NDF Administration

nilz_2

Hello all,

Am new to this forum and to this web site. but there is lots of good advice . I am also a first time buyer and have put in an offer for a property recently.

I spent most of last week speaking to my IFA and also getting quotes on the internet for MDLA. The cheapest quote I got was with NDF Adminstration who I believe adminster the polices for Life with CIC.

Has anybody ever heard of them. I am going to speak to my IFA about the underwritten polices themselves but has anyone had any dealings with them ?

I shall wait anxiously for any replies !!!!! In the meantime I shall be shopping around for Buildings & Contents Insurance.

Many thanks in advance,

Nilz

dunstonh

NDF appear cheap at first sight but their policy is effectively a yearly renewable term assurance.  This means the premiums are based on the sum assured and your age that year.  

I would strongly recommend you look at the plans which have guaranteed premiums at best or at least a term assurance which is reviewable but a premium set at the outset.

NDF policies can be bought on my website but I am seriously considering removing them from the companies offered because it seems many people are not reading the small print and choosing to buy them.   They are cheap but usually second place company is only a few pence behind.

payless

Yeah, not really comparing like with like.

nilz_2

I have been told the the quote provided will only ever reach a maximum of £62. This would be a dual application with effectively 2 seperate plans for myself and my wife.

There is also a loyaly discount, after the first 2 years. I am finding the illustration a little confusing in the light of the postings.

Can I not simply terminate the polic, if the annual charge increases astronomically or will I be paying more in the long term for starting a new policy later on ?

thanks

dunstonh

The illustration shows you premiums based on their current pricing for sum assured/age for each year.

Critical illness has been rising in cost and after many years of lower premiums of life cover, there has been an increase in premiums on those too over the last 12 months.

So, all it takes is for NDF to reprice their premiums and you could face a big jump. Equally, they could decide to lower premiums but that wouldnt be in line with the current cycle.

In the end you could pay less but you could end up paying more. You could change at a later date but if premiums have gone up across the board you would pay more for a new term assurance. Or what if you become medically uninsureable or face a premium rating due to health. That may not be an issue now but what in the future.

Personally, I wouldnt recommend a yearly renewable term as I have seen them start low and then increase over the years to massive amounts. Its not worth the risk in my opinion. However, you may feel the risk is acceptable. One thing should be noted is that for those in their 20s, the risk would be lower than those in their 40s

nilz_2

Thanks for the replies. My current thinking is to ensure that I am at least covered for Life Insurance and Income Protection. I am therefore pursuing this tact and will be getting quotes. Thank you all for your help

MarkyMarkD

I am therefore pursuing this tact and will be getting quotes.

Why DO people confuse tact and tack?

You can't pursue a tact.