We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

MSE News: Stonebridge to axe life insurance cover for thousands

Stonebridge set to axe its monthly renewable life protection product for thousands - consider getting cover elsewhere...
Read the full story:

Stonebridge to axe life insurance cover for thousands: consider alternatives now

OfficialStamp.gif


Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

Comments

  • robin58
    robin58 Posts: 2,802 Forumite
    So in basic English, 'We have been selling a product which is costing us more in payouts than what comes in via subscriptions. Therefore we are shutting down the cover to limit our loses'.
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!! ;)
  • CKhalvashi
    CKhalvashi Posts: 12,129 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    robin58 wrote: »
    So in basic English, 'We have been selling a product which is costing us more in payouts than what comes in via subscriptions. Therefore we are shutting down the cover to limit our loses'.

    Sensible business decision IMO.....
    💙💛 💔
  • footyguy
    footyguy Posts: 4,157 Forumite
    1,000 Posts Combo Breaker
    Agreed.

    4000 customers represent only about 1% of their total customer base.

    I guess they considered upping the premiums, but that would almost certainly result in even less than the current 1%. There comes a time when any business needs to concentrate on selling products it makes profit on, and ditching lines that don't sell/produce a profit.

    Supermarkets do this all the time.
  • robin58
    robin58 Posts: 2,802 Forumite
    footyguy wrote: »
    Agreed.

    4000 customers represent only about 1% of their total customer base.

    I guess they considered upping the premiums, but that would almost certainly result in even less than the current 1%. There comes a time when any business needs to concentrate on selling products it makes profit on, and ditching lines that don't sell/produce a profit.

    Supermarkets do this all the time.
    I agree with you all.

    What annoys me is that they can't just say that without going into companynize whilst doing a smoke and mirrors job to hid the decision they made to stop the cover.

    When I hear any company blurting this kind of drivel, I tend to steer clear of giving them any business as I feel I can't trust them.
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!! ;)
  • phillw
    phillw Posts: 5,630 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    robin58 wrote: »
    When I hear any company blurting this kind of drivel, I tend to steer clear of giving them any business as I feel I can't trust them.

    Yes you can't trust them. The point of taking these type of products out early in life when you are very unlikely to claim, is that the premiums are lower.

    They will have known that they would need to pull the scheme when it was started. The only way they would have made money otherwise is if you decided to stop paying. It would take 138 years before you paid more in premiums than you would receive, so it's unlikely anybody would ever have stopped paying.

    The only other option is that they would wriggle out of paying when you died.

    tl;dr They suckered their customers on purpose.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.3K Spending & Discounts
  • 240.7K Work, Benefits & Business
  • 617K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 253.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.