Mortgage Life Assurance Cost Cutting/MoneySavingExpert.com Discussion

payless

Do you know why you ended up with whole of life rather than "term"

so not comparing like with like ... I trust they issued you with some sort of "suitability letter" which would have explained why WoL was recommended ( and stated why better suited than term)

of course Cavendish online won't be able to advise you to swap ( or not) , as they don't give advice

dunstonh

and being WOL with an investment element, there would have to have been a full review. However, its allied crowbar we are talking about

eilz

1)Ok, Whole Life costs more, but you get cash back dont you. Not sure how its worked out though, most say between 4/5% return.
2)Term Insurance, once ended, you get nothing if your still a-live of course, so whats the point?
3)Critical Illness on the other hand is worth having for all, right?, but from what I understand you can only get it for 25yrs and need to get it reviwed, which only some insurance companies do, is this right?

Term insurance is only worth getting if you can get it its term for 40years and your at least 40yrs old, although not sure if you can get this kind of period cover, anyone agree/diagree?

Whole Life - From what I gather, is a bit of a gamble and once you get it, you have to pretty much stay on it for al least 12-16 yrs before you can get any decent cash back on it, anyone disagree?

Is there any other and/or better options out there?

payless

there are actually a number of different types of WoL , but my guess is that you had a unit linked policy something like explained in
http://www.moneyweb.co.uk/products/insurance/wol.html ( does option 3 sound familiar?)

given your comments I would recommend , that at this stage you should not be looking at execution only products, like those on offer at Cavendish - either do a lot more research or appoint an adviser

dunstonh

IIRC, the dunbar WOL plans used the investment element to pay for future premium hikes/increases. Of course it would depend on what rates (min, std or max). Dunbar has a reputation for doing a lot of these. As a tied agent, they could.

I concur with payless. Your comments do suggest that you need to research a little further into the workings of protection policies or get advice. You seem to be misunderstanding what types of policy are needed and when and the pros and cons or endowments, WOL and term assurance (you havent covered FIBs or PTAs).

b88

Im new to all this mortgage jargon etc and my head is really busting because ive totally got myself confused with it all.
Im in the process of getting life assurance and critical illness cover using the cavendish online website.Could somebody tell me why it costs more to get critical illness cover(approx £26) than what it does to get critical illness cover + life assurance(approx £22) on the same policy?

dunstonh

Could somebody tell me why it costs more to get critical illness cover(approx £26) than what it does to get critical illness cover + life assurance(approx £22) on the same policy?

You probably are not comparing like for like. For example, you could be comparing guaranteed premium/cover against reviewable or budget critical illness (CI) against comprehensive CI. Or even mixing up terminal illness cover and critical illness cover (as has been seen on here before).

d.ylan

hi all

I'm just wondering if anyone can suggest an insurance provider for someone with diabetes.

My parents are currently paying £102.41 for a 21 year decreasing term policy, joint life first death.

This seems a little excessive to me (not overly, as my father is a smoker and 49) but I'm hoping I can drive it down a bit anyway, however none of the comparison sites I'm trying have the facilities to quote for a policy including a prexisting condition (diabetic).

Any suggestions on how I can proceed from here without having to wait weeks for postal rejections?

cheers for all your assistance

d.ylan

dunstonh

Any suggestions on how I can proceed from here without having to wait weeks for postal rejections?

Only way to get that sort of service is to go to an IFA or whole of market protection advisor.

ashleyfae

Myself and my partner are paying £55 and £58 respectively to life/critical Illness policies to give us each a payout of £123( to cover our mortgage).We don't have a single policy each, I have 2 he has 1 and we then have a joint one. I have a feeling we may be paying more than we should? Can you advise please????