Does insurance company matter for level term life assurance??

rajsc

Hi All,
I read the moneysavingexpert guide and contacted LifeSearch and Cavendish for level term life assurance for myself and my wife as two single policies.
For the level of cover they said to split the total into two polices each. That’s fine.
They have both said their price won’t be beaten! So either it becomes them against each other for the best price or it comes down to the insurance companies that offer the policies.......is there an advantage with certain companies in terms of paying out and ease of use.....

One company has offered: Vitality, L&G, Aviva
The other: Aegon, AIG

If they are all safe bets then surely it’s just a case of the cheapest one is the right one?

Thought best to ask here for non-biased advice!

Thanks in advance

Weighty1

It depends what you are looking for.

Level term assurance is level term assurance and the product itself doesn't really differ but some of the additional benefits do. For example, AIG offer a service called Best Doctors which enables you to get a second opinion for medical issues from top specialist in the world. There's recently been a press release that a director within AIG used this service following a heart attack at a young age and when previously healthy. It transpired she had an hereditary condition and following recommendation from a consultant in Ohio (I think) he children have been screened and found to carry the gene but they can now deal with the condition proactively rather than reactively.

Aviva go one step further and offer something called Global Treatment. It's £4/month but for what it provides it's fantastic value for money and I'd takes this option, even if the cover itself was already £2-3/month more expensive.

So no the provider doesn't really matter in respect of the insurance, the cheapest plan will do the job of paying out the money, but is that all you are interested in?

rajsc

Thanks.
That’s useful, and interesting! Didn’t know about that.

All we were really after was cover until dependents were old enough/settled, education, marriages and to pay off mortgage.
If we survive upto retirement then most of these things should have been sorted by then!

Weighty1

So if the main aim is to cover a mortgage and cover until kids are grown up then why not consider decreasing term cover for the mortgage and family income benefit to cover the kids upbringing?

This would probably work out 30% more cost effective than a single level term assurance and in all reality the chances are you'll outlive your cover so if you need to arrange life cover why not arrange it in the most cost-effective way which is still fit for purpose?

ACG

All you want is life insurance, but what is the difference in premium between the highest and lowest?

If we are talking 50p a month (£6 a year), you may find that you can have best doctors or access to a nurse/bupa healthline etc compared to the cheapest.

I have Best Doctors global treatment, wont go in to details but my little girl has been in and out of hospital a few times since she was born (turns out nothing serious but at the time we did not know), knowing I could sent her reports off for a specialist for free for a second opinion was well worth the full premium I pay, let alone an extra 50p.

Only you can decide, but if the difference is not noticeable, I would have a look at the added extras and see which you think is most important and something you may use.

I realise it is a money saving website and this goes against that, but sometimes there are places to spend a little more.