Life insurance (clueless)

bbbunny

When we bought our first house in august of last year out mortgage advisor said that we should go with Zurich life insurance for my husbands life insurance. Being very new (and niave) to the game we said fine and we currently pay around £52 per month for it.

Browsing on the internet tonight I decided to look at what Tesco would charge us. I entered all his details and the quote came through as £9.50 per month.

Is this right? Are Zurich charging too much? I am really confused now as to why there is such a big difference.

Is the life insurance like the car insurance and lasts 12 months before you have the chance to go with someone else or can you renew it any time?

I told you I was clueless about this sort of stuff:huh:
Please help

*MF*

Hi ...

Life assurance is unlike car insurance - it is rarely anything but a long term contract which remains in force (unless/until you stop paying for it - or it expires after the period for which it was set up).

Life assurance is also an "umbrella" type description - under which there are various types of cover - and each type of cover is different and carries different costs. I guess that the difference in cost you have mentioned will be because of that - you are comparing different things - I could be wrong, but that is my initial guess.

Can you find the papers or policy (ies) that you took out and give us more information on what they say, without those details it is impossible to give you any real help.

kiransall

There is a big difference not only in the price but will the cheaper life insurance company pay out if anything was to happen to your husband?

beautyqueen88

i've found the same sort of thing my mortgage advisor has sent us all the paperwork for scottish provident at £30 a month and i've just found we can get life insurance from legal and general for about £11 a month i've checked the policies and they appear to be the same, payment on death, critical illness cover etc.
im not sure what to do know i dont really want to be paying £200 a year more for the same thing

BeeUK

£11 a month sounds cheap cheap cheap for critical illness cover?

Are you 100% certain that it is included in both policies?
Critical Illness cover is not the same as Terminal Illness cover which is usually included in all Life policies!

*MF*

beautyqueen88 wrote: »

i've found the same sort of thing my mortgage advisor has sent us all the paperwork for scottish provident at £30 a month and i've just found we can get life insurance from legal and general for about £11 a month i've checked the policies and they appear to be the same, payment on death, critical illness cover etc.
im not sure what to do know i dont really want to be paying £200 a year more for the same thing

What BeeUK has said is correct, one sounds cheaper than I would expect.

Suggestion - you need advice - maybe from an IFA, or, were it me, why not go back to your mortgage advisor - show him/her what you have found, and ask for their advice/opinion.

Neither action commits you to anything, nor when you are clear what is what (apologies if you are - but you need to be), does it stop you shopping around again.

bigbloke45

I would question why your mortgage advisor recommended Zurich. You can certainly do better than them for the same premium.

Tesco does not underwrite it's life assuarance, it used to be underwritten by Norwich Union, but it is now L&G or AXA, I think.

The important thing is to ensure that you calculate the correct amount of cover you both need and then find the best value. You can stop your Zurich cover anytime but NEVER stop existing cover until you have started a new one.

Good luck!

dunstonh

would question why your mortgage advisor recommended Zurich. You can certainly do better than them for the same premium.

Probably isnt an independent and works for Zurich.

The difference in premium almost certainly suggests not like for like cover. I bet its pure life cover vs life cover with CI. Or, yearly renewable term vs guaranteed term assurance.

Cookie82

Hi

I had the same problem. When I got my mortgage the finacial advisor basically pushed the life assurance on to me, being young and first time buyer I believed everythign he said and did it. Now I am worried about chaging cover as Zurich is expensive (£68 per month for 2 peopel) and the others seem too cheap like I'm no covered for certain things. Am trying to read through everythign but hard to make sense of all the jargon. But feel like I am being ripped off with Zurich!

TEDDYRUKSPIN

Please note:

The cost will reflect with CI and medical underwriting. All life covers on tesco or any other website only quote the original premium price.

SOLUTION:

Shop about. Not all companies give what you want.

PLEASE NOTE: you pay for what you get.

bbbunny

Sorry I took so long to reply but here are the details I have

It says that it is decreasing mortgage cover

It says life cover - £102,000

Lifestyle benefit - £102,000

Payment instruction benefit - does not apply

Payment - £53.91 each month

Term - 35 years

The guarenteed insurability option benefit - does not apply

The waiver of contribution benefit - does not apply

the total permanent disability own application benefit - does not apply


Thats all I can find at the moment but I am currently sorting through the mountains of paperwork that we seem to have accumulated over the last few months so if I find anything else I will let you know.