My saving on life insurance

daveyboy1949

Hi Just like to say a big thank you to Martin and his team.
After reading through the advice on the website I completed a decreasing term joint life insurance questionair without advice,which was a real easy form to complete. This has saved me at least £50 per month for 17 years, you work the maths!!! :beer:
Dave

BooJewels

daveyboy1949 wrote: »

After reading through the advice on the website I completed a decreasing term joint life insurance questionair without advice,which was a real easy form to complete. This has saved me at least £50 per month for 17 years, you work the maths!!! :beer:

As long as you appreciate that the salient factor of this arrangement is the wording; decreasing term. Whilst it will undoubtedly save you money as you go along - the payout, if claimed, may be significantly lower too - that's how the lower premium is offered - the potential payout decreases as time passes.

We're just in the process of making a claim and took a level term policy - which - if we're successful - will pay out well over twice the sum that a decreasing term policy would (i.e. to us - relative to the length of the policy elapsed and original sum assured), which will potentially leave us with a difference of about 22.5 times more than the potential premium savings. In other words, the extra we paid (nothing like £50 per month more, I seem to remember £11) will be very well worth it.

I don't think that you so much made a saving, more like you simply went for a less expensive option. In our case, linked to our mortgage, a level term pays us what we originally borrowed and a decreasing term would pay our outstanding balance - currently about 44% of what we originally borrowed (we added a chunk mid-policy, as an endowment under-performed).

Weighty1

If you are saving £50/month then there is likely to be some BIG difference between what you had and what you are now arranging. Could it be that an existing policy included critical illness cover which would pay off your mortgage if you were to get cancer or have a heart attack? As an adviser myself, alarm bells would be ringing if someone said they were able to save £50/month on their current premiums.

enjoyyourshoes

I think the 'bigger ' point is that doing some of your own research and utilising as many of the comparison, specialist and individual company sites does get you a significant reduction in premiums.

I saved over £1.50 per month for 40 years on like for like comparisons on life insurance.

I know I would rather have the £1.50 than the broker/insurance company etc

Weighty1

enjoyyourshoes wrote: »

I think the 'bigger ' point is that doing some of your own research and utilising as many of the comparison, specialist and individual company sites does get you a significant reduction in premiums.

I saved over £1.50 per month for 40 years on like for like comparisons on life insurance.

I know I would rather have the £1.50 than the broker/insurance company etc

Even if that means missing out on advice in relation to writing plans into trust and not having any protection from the Financial Ombudsman if it transpires you took the wrong type of plan due to not seeking advice?

daveyboy1949

I am 69 years of age and an ex financial advisor so with respect know what I'm doing. After speaking to many Life Insurers direct and brokers the quotes were in excess of £120 but by using Cavendish with no advice was where the saving came in. The decreasing term insurance which also includes terminal illness is appropriate for my needs.

dunstonh

After speaking to many Life Insurers direct and brokers the quotes were in excess of £120 but by using Cavendish with no advice was where the saving came in.

This still doesnt sound right.

Cavendish use broadly the same pricing as IFAs but on nil commission basis. The commission level is not that size.

I fully expect providers own pricing to be different to by that sort of amount but whole fo market brokers/IFAs should be a lot smaller. Although Cavendish would still beat them.

BooJewels

daveyboy1949 wrote: »

I am 69 years of age and an ex financial advisor so with respect know what I'm doing.

Well, with respect - how would anyone here know that? Apart from your rather inadvisable user name giving away your year of birth - that being only your second post, no-one could possibly guess at your former professional experience, especially in view of the nature of your post.

enjoyyourshoes

Response to Weighty1:-

I knew exactly the purpose of the Life insurance policy, what it intends to do and what exceptions and limitation there are.

The way the will has been written means there is no need for the monies to go into trust as this has been covered with other policies and assets.


I also discovered that cavendish (in this particular instance) dd not beat an alternative (none specialist) comparison site, which surprised me as I had read the MSE article !

ACG

daveyboy1949 wrote: »

I am 69 years of age and an ex financial advisor so with respect know what I'm doing. After speaking to many Life Insurers direct and brokers the quotes were in excess of £120 but by using Cavendish with no advice was where the saving came in. The decreasing term insurance which also includes terminal illness is appropriate for my needs.

But is it like for like with what you had?

There is no way you are paying £50 less per month for an identical policy, in fact there is no way you are paying £50 a month less for even a remotely similar policy.

So you may have saved money, but it is almost like saying I have saved £50 a month on petrol...I ride a bike.

And if you were a financial advisor, I would expect you to be able to complete the research and apply for a policy without advice...it was your job!