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Life Assurance: Confused and paying way too much
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therivierakid
Posts: 329 Forumite
I've been reading the articles on life assurance and could do with some advise or at least a push in the right direction... I think I'm paying way over the odds.
My fiancée and I are currently paying around £27 a month each on two separate policies. Both are with Legal and General and both are decreasing term. We bought our first place together back in April this year and there's about £151k left on mortgage. I assume that should one of us die the mortgage would be automatically paid off and the one remaining would get nothing extra.
Should I cancel this policy and go with a joint level term policy instead? I've seen a few on Cavendish (£13 a month to cover £150k, £30 a month to cover over £240k - both of those are with big name insurers).
We're both 29, non-smokers and neither of us work in high risk jobs.
My fiancée and I are currently paying around £27 a month each on two separate policies. Both are with Legal and General and both are decreasing term. We bought our first place together back in April this year and there's about £151k left on mortgage. I assume that should one of us die the mortgage would be automatically paid off and the one remaining would get nothing extra.
Should I cancel this policy and go with a joint level term policy instead? I've seen a few on Cavendish (£13 a month to cover £150k, £30 a month to cover over £240k - both of those are with big name insurers).
We're both 29, non-smokers and neither of us work in high risk jobs.
*removed by forumteam - please do not advertise in signatures*
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Comments
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L&G from IFAs is usually quite cheap. Its quite expensive when bought from their own tied salesforce or the banks though.
To find a difference of £27 vs £13 suggests you are not comparing like for like. The difference is too great. Even for tied version of L&G.
My guess if that you have critical illness cover at the moment but not on the £13.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
L&G from IFAs is usually quite cheap. Its quite expensive when bought from their own tied salesforce or the banks though.
We were sold the product by our mortgage adviser - not sure how independent he was though...
I'm not sure we do have critical illness cover at the moment. I'll check this.My guess if that you have critical illness cover at the moment but not on the £13.
It just seems like we could be getting a lot more cover for a lot less money.*removed by forumteam - please do not advertise in signatures*0 -
We were sold the product by our mortgage adviser - not sure how independent he was though...
L&G have a tied salesforce for mortage advisers who can shop round on mortgages but are tied to L&G for insurance.
It is important to make sure any adviser you see has access to the whole of market. Tied agents are expensive and have limited products. There is no reason to see a tied agent.It just seems like we could be getting a lot more cover for a lot less money.
You probably will but not with the price difference you have at the moment. That indicates you have missed something off. Two single life plans will be more expensive than one joint life. However the premium does look like CI is included (and possibly waiver of premium).
Or you could be comparing against a yearly renewable term assurance or reviewable premium term assurance and not a guaranteed premium term assurance.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks, dunstonh. I will check the fine print tonight and see exactly what we have at the moment.*removed by forumteam - please do not advertise in signatures*0
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Another thought... is it worth having critical illness cover if you have MPPI as well?*removed by forumteam - please do not advertise in signatures*0
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MPPI doesnt cover the same things. Personally, I would put PHI before CI and MPPI.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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I am getting quotes for £10 -£11 for a joint policy through Cavandish
Both 30 Non smokers, with no CI on 20 Years £150K
How long does the policy take to come through? and is there anything that you should watch out for?Max Millionaire191 007:T :T :T :T :T :T :T :T :T :T0
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