Quotes for mortgage protection insurance - why do they vary so much?

macs123

We've been getting some quotes for decreasing term life insurance, to cover the value of our mortgage. We've got a quote through our mortgage broker for £160 per month with Scottish Widows. We've tried to get some quotes ourselves through a comparison site (moneysupermarket) and four quotes come up, ranging from around £6-£7 per month. We don't understand why there is such a big difference. Is Scottish Widows offering something different to the other insurers (the others were Quotemehappy, L&G, BeagleStreet and VirginMoney)? We're both in the armed forces, and our broker said this is why the premiums were so high, but we did also indicate that we were in the armed forces for the comparison site's quotes. Obviously we'd prefer the lower quotes, but are we missing something, would the cover be inadequate?

Aretnap

£160/month is very expensive for a pure life insurance policy (though it obviously depends on other factors like your age, and how much cover you want), so are you sure that what your broker is offering is just life insurance? If it was a quote for a full package including critical illness cover (pays out a large lump sum if you get one of a list of serious illnesses) and/or income protection (pays a monthly income if you are too ill to work, potentially for decades) as well as life insurance then the price would make a lot more sense.

dunstonh

Quotes for mortgage protection insurance - why do they vary so much?

Title indicates one reason. Mortgage protection insurance isn't a specific product. It is a collection of insurance policies that could be used.

We've been getting some quotes for decreasing term life insurance, to cover the value of our mortgage.

So, as it stands, you think it is just decreasing term assurance.

We've got a quote through our mortgage broker for £160 per month with Scottish Widows. We've tried to get some quotes ourselves through a comparison site (moneysupermarket) and four quotes come up, ranging from around £6-£7 per month.

Clearly, that is not like-for-like. I suspect you have looked at just decreasing term assurance, but the broker is including other things, such as critical illness cover and/or income protection.