Splitting insurances between providers?

DBoy1

Hi all,
Just in the process of buying first house and we are getting insured up.
I'm the main bread winner so on my life we are considering a mortgage cover, a monthly family benefit and also a lump sum.
I haven't seen any advice on this anywhere,but does it make sense to take each of these insurances with different providers? Even if it might be a bit cheaper to get all from one?
My reasoning being:
- Less cover per insurer means less hoops to jump through during the application, as I believe they have thresholds for GP reports, medicals, tests etc.
- Even if one insurer was to reject a claim for some reason, the other policies still have a chance.
- If the insurer goes out of business, others still available. Particular thinking of he monthly benefit here.
Appreciate any thoughts or advice

dunstonh

I haven't seen any advice on this anywhere,but does it make sense to take each of these insurances with different providers?

No issue unless you are running into millions of pounds.

- Even if one insurer was to reject a claim for some reason, the other policies still have a chance.

Why would one insurer reject a claim and others pay out?

- If the insurer goes out of business, others still available. Particular thinking of he monthly benefit here.

When was the last time a life assurance company went out of business and people lost their policies?

DBoy1

Thanks for the reply.

No issue unless you are running into millions of pounds.

We're looking at mortgage protection of £700k, and if I were to pop my clogs next year the family benefit would total just over £1.4m. So, if all with the same insurer, I am expecting a full medical, blood work, GP report, HIV testing etc. Not expecting anything to cause any issues, but apparently they take time to arrange, especially the GP report? We're exchanging contracts for the house purchase in 2 weeks.
If I split it up with different insurers, maybe it could be a "mini" medical for each.

When was the last time a life assurance company went out of business and people lost their policies?

No idea, as I've never had a life insurance policy before, so have never followed the industry. Guess that's part of the reason why I am asking here.

Why would one insurer reject a claim and others pay out?

As above.

Weighty1

DBoy1 wrote: »

Thanks for the reply.

We're looking at mortgage protection of £700k, and if I were to pop my clogs next year the family benefit would total just over £1.4m. So, if all with the same insurer, I am expecting a full medical, blood work, GP report, HIV testing etc. Not expecting anything to cause any issues, but apparently they take time to arrange, especially the GP report? We're exchanging contracts for the house purchase in 2 weeks.
If I split it up with different insurers, maybe it could be a "mini" medical for each.



No idea, as I've never had a life insurance policy before, so have never followed the industry. Guess that's part of the reason why I am asking here.


As above.

Not all providers ask for GP reports. Some only ask for medicals, unless there is something in your history which they need clarification from the GP about.

The difference in the underwriting timeframe between a mini-screening and a full medical examination is normally only a couple of days due to the processing of blood test results.

DBoy1

Thanks v much. If there's not much difference in the timing, then I might as well just go all with the same insurer and get it cheaper. At first it just felt a bit unsettling to have all eggs in one basket.