Level Term Assurance Cost Cutting/MoneySavingExpert.com Discussion

dunstonh

Are Life Assurance policies fixed for a certain amount of time

Most are.

e.g. what happens if I wanted to make changes to my cover in say a years time

Some can, some cant.

On the flip side, if this is true can my policy payments be altered by the insurer at the end of the term.

Some can, some cant. If you go with reviewable premiums then they can alter them. Or if you pick an investment backed plan they can (not many of those about nowadays).

wonkles

Hi, I took out a joint level term life insurance policy when we bought our house in 2003. Still paying for the policy now but realised when I saw a financial adviser last week that I didn't need it as my pension has a death in service option. The adviser basically said I'd been mis-sold the policy as they should have asked me about my pension. Is there anything I can do about this?

dunstonh

wonkles wrote: »

Hi, I took out a joint level term life insurance policy when we bought our house in 2003. Still paying for the policy now but realised when I saw a financial adviser last week that I didn't need it as my pension has a death in service option. The adviser basically said I'd been mis-sold the policy as they should have asked me about my pension. Is there anything I can do about this?

Generally, death in service is not typically included for a needs analysis on mortgages. Its primary purpose is to replace lost income on death. Not to repay a capital death. Now of course you could use it for that but normally you find that it would not be considered a mis-sale if death in service was not included.

However, if you are saying that you had no financial need for life assurance despite taking on the debt (which would be unusual as death in service would not exceed 4x salary) then you may have a case. If you have children then it wouldnt have been mis-sold and if you are married or its a joint debt then its unlikely to have been as well.

I have put in many complaints over the years but I wouldnt be putting one in for mortgage life assurance when there is a mortgage and a married couple or partners.

It may also be worth questioning the motives of this FA. Is it an IFA or an FA?

rob318

Hi, new here and have a question that maybe someone could help me with.
I want to get a level term life insurance policy.
An advisor i saw in person got me a quote, however by using a price comparison site online i got a significantly lower quote.
When i informed the advisor of this she said the lower quote may not be guaranteed to have the same premium for the whole term, but i have since found out that it has.
Also she said that if i took a policy with the company her quote was from, the policy would be underwritten from the start, where as a cheaper one might not be.
I have no idea what that means! Could anyone explain that to me please?
Thanks in advance!

dunstonh

Also she said that if i took a policy with the company her quote was from, the policy would be underwritten from the start, where as a cheaper one might not be.
I have no idea what that means! Could anyone explain that to me please?

It would suggest that the adviser is using a company that will cover you straight away and suggesting you may not get that if you go DIY. However, that isnt strictly true (or wrong either). It depends on the provider you use. Some will give instant cover. Some will make you wait for underwriting to make a decision.

The biggest issue between DIY and advice is that you get virtually no consumer protection on what you take out if you DIY as you are choosing the product (what type of life assurance from the 13 types available), provider (which company), how its set up (e.g. joint life first death, single life/single owner, life of another) and how much the sum assureds will be and what term and if it should be in trust or not and if so, which type of trust.

If you DIY and get it wrong then its your own fault. If you use an IFA and they get it wrong, then you get consumer protection. You shouldnt be using an FA as they are the most expensive (but you would get consumer protection if you did).

rob318

Great!
Thanks for the advice and explanations, most helpful:)

kingstreet

Mr Trust is in the house...

So what's the cover for rob?

baffledatno23

I am so utterly baffled by all this. I am generally competent and in most aspects of life but the whole topic stumps me. I have never felt so ' locked out ' of any understanding by jargon, endless argument and obfuscation . Is there a place within this site where I can post a basic sketch of my families insurance/assistance needs and get some good starting advice..... please! I have had enough of the 'simple ' guides that within a short while ask you to know everything about every possible thing that might be needed. Any pointers very gratefully received. Thanks

kingstreet

baffledatno23 wrote: »

I am so utterly baffled by all this. I am generally competent and in most aspects of life but the whole topic stumps me. I have never felt so ' locked out ' of any understanding by jargon, endless argument and obfuscation . Is there a place within this site where I can post a basic sketch of my families insurance/assistance needs and get some good starting advice..... please! I have had enough of the 'simple ' guides that within a short while ask you to know everything about every possible thing that might be needed. Any pointers very gratefully received. Thanks

Start a thread of your own.

Set out what you are looking to achieve from protection planning and I'm sure there will be plenty of help given.

Remember - protection is built on your needs and if you don't make them specific you'll get a whole lot of whys, wherefores and maybes, as everyone tries to cover all the bases.