life insurance renewal

serendipty

Hi there,  Our life insurance runs out in a couple of years time . Do you think that it's worth trying to negotiate a new term with the provider now ( when we are 2 years younger ) or should we wait until the existing term is up? We are both in our early 50's but have younger children and a sizeable mortgage commitment , hence our wanting to make sure we are covered.
Many thanks for any advice you can offer.

SaverRate

Probably best to speak to a broker as they will be able to look at prices currently vs what might be in 2 years time and look at providers who suit your needs/circumstances. 

Most likely the insurance premiums will increase so may not make sense to do this now and just wait for 2 years time. 

dunstonh

Do you think that it's worth trying to negotiate a new term with the provider now ( when we are 2 years younger ) or should we wait until the existing term is up? 

Providers don't negotiate.  They offer their terms and you either accept them or reject them.  Going direct to provider is not usually the best way.  Either they won't do it or they will be more expensive.

As to what is best, it would depend on your circumstances.  i.e. what you need vs what you have.   An analysis of that needs to be done.

mgfvvc

I was able to take out a simple term policy for a reasonable amount when my previous cover expired. The cost then was around £12 pcm for £100,000 cover on a single life 10 year term policy for a healthy 55 year old male non-smoker. It was underwritten by AIG through Cavendish Online. Obviously pricing may have changed since and your circumstances and requirements are likely to be different.

fullofcold

serendipty said:

Hi there,  Our life insurance runs out in a couple of years time . Do you think that it's worth trying to negotiate a new term with the provider now ( when we are 2 years younger ) or should we wait until the existing term is up? We are both in our early 50's but have younger children and a sizeable mortgage commitment , hence our wanting to make sure we are covered.
Many thanks for any advice you can offer.

Most insurers will not allow you to extend the term of your cover, and also insurance has changed quite substantially over the last couple of decades which means there are other products available that may be more suited to you now than when you originally took out your plan.

I'd personally speak to an insurance broker that has access to whole of market.  There are independents, but you will find a lot are associated with mortgage brokers as well that don't charge a fee.

Only thing I will say is that some are charging a fee to cancel a plan within a set period of time - be sure not to agree to that kind of contract with a broker because most won't.

dunstonh

Only thing I will say is that some are charging a fee to cancel a plan within a set period of time - be sure not to agree to that kind of contract with a broker because most won't.

They shouldn't be as that effectively became unlawful with the consumer rights act 2015.   With the exception of fee cases where the commission is taken to offset the fee and where the fee is explicit.  i.e. adviser fee is £1000 and the product commission was £1354. the adviser would only collect £1000 of that commission and the excess used to reduce premiums amounts.   

I'd personally speak to an insurance broker that has access to whole of market.  There are independents, but you will find a lot are associated with mortgage brokers as well that don't charge a fee.

Most IFAs (advisers) don't do protection or mortgages nowadays.    However, the IFA (firm) will usually employ or have access to advisers that focus on mortgages and protection.  So, the firm may be an IFA firm but the advisers within it that deal with protection may not be IFAs themselves.      Its harder to be a jack of all trades nowadays and increasingly you find firms segmenting their advisers to focus on certain areas.