Scottish Friendly / Legal and General Life Insurance

stoicspender

I recently had a call from GMB Life cover having joined the union asking if I was interested in Life Cover, it was something myself and partner had discussed so I agreed to take out the cover. The underwriters are Scottish Friendly and the cost was £18.45 PCM for an insured sum of £12,500. However, I received a letter this week from Legal and General and it states for monthly premium of £6.00 I would receive cover for £28,871...Am a bit confused?! For a monthly premium of £18 Life cover cash sum would be £148,135.

Also one the reverse of the document is a M&S or Amazon 'Gift card for &100 after you take out over' ( offer ends 30 April 2020) Has anyone taken this cover? There seems a lot of small print all round so I thought I'd see if anyone has taken 5his cover with legal and general and regarding the Amazon card is it a ' sprat to catch a mackerel' as they say, are there catches??

It seems a far better deal but almost sounds too good to be true? I am pretty useless at this kind of thing and have tried to avoid thinking about it as it's not the sort of thing you want to think about, that said £28,871 or £148,135 as opposed to  £12,500 are a far better piece of mind for my loved ones..

Weighty1

It depends on whether you are comparing apples with apples or oranges.  Firstly GMBProtect is a broker, not an insurance company, however, it could be that they are tied to a single company that they are recommending.  As the underwriters are Scottish Friendly, I have a feeling that they may have quoted you their guaranteed acceptance plan which will cover you until age 69.  Since the plan is not medically underwritten it does not cover death from natural causes during the 1st 2-years that the plan is in force.
L&G, on the other hand, would be quoting for a medically underwritten plan which would need you to answer a whole range of health questions and depending on your answers you could either be accepted with the standard/quoted premium, they could increase the premium or they could decline to offer you cover.  L&G also offer cover beyond aged 69 and there is a lot more flexibility with the options offered by L&G in relation to the level of cover, how long the plan runs for, the type of plan ie. decreasing to cover a mortgage, family income benefit to provide an income or level term cover to provide a fixed lump sum.

Personally, I don't think GMB should be contacting you just on the back of joining the union.  It sounds very much like cold calling to me.

wjr4

1) how old are you?
2) any health issues or a smoker? 
3) why did you agree to proceed with cover you are unsure of? They should not be cold calling you! 
4) £30k of cover should cost you around £3.50 pm based on a 20 year term. 

coachman12

Personally, I'd get rid of the GMB one----sounds a right rip-off.
 You can far better cover ( like your example of Scottish Widows). But, you need to decide if you want to pay for any of this sort of cover at all , as it hadn't occurred to you previously. If you do, google for the best deals and make a few applications. Good luck and welcome to the forum.