Pay Annually with l&G?

FIRSTTIMER

I seem to have spotted that paying for my income protection and my life insurance with cic (both currently with L&G) annually saves my 4%. Is this true and worth it? Both policies equate to £704 annually paying monthly at the minute...

dunstonh

Some providers offer small discounts for paying annually or the whole term in one go. Its not done that often though.

Maybe focus on the quality of the cover before a few more pennies to save (depending on when you bought it an how the L&G plans are not that great)

Weighty1

Generally, the saving of paying annually is equivalent to the monthly plan fee, which is often around £2/month. I'm not even sure if you can change the payment frequency chosen from monthly to annually if the plan is already up and running, however, that's only because no one has even asked me to look into it.

One consideration is if you were to make a claim 1-month after paying for the year then whilst you'd make a claim you'd already have paid the full amount for the year so actually, all the savings you had made over the previous period could be wiped out.

The other consideration is that if your circumstances change and your cover is no longer appropriate then you are either stuck with the same policy for 12-months so as not to waste money OR you'd switch plans but lose up to a years worth of cover (I know the cover would still be in force but you'd, in effect, be paying for 2 lots of cover).