mortage life insurance

hect63
hect63 Posts: 22 Forumite
in Insurance & life assurance
hi folks,i am looking for some info.i took mortgage life insurance via a financial advisor and was paying 62 pounds a month for 64300.i went online to get a quote as i have been paying this for two years and have been told i was paying too much and to my amazement i found the same company were going to charge me only 22 pounds for the same protection.my financial advisor recieved 1500 pounds commission if i change,will i be liable for any charge?
cheers folks

Comments

  • mikeorange7
    mikeorange7 Posts: 35 Forumite
    That sounds a huge difference.. Are you sure that the quote for £22 is for the same amount and type of cover. Check the key features documetns to be sure.

    Mortgage life insurance is typical sold as a reducing term policy for duration of the planned mortgage debt term.

    Let me know your age, are you a smoker, and the planned mortgage repayment date and I can let you know what you should be paying for such protection. ( this offer comes under no obligation what so ever, I'm just trying to help you)

    While your reviewing your finances it would be prudent to consider your requiremnts for other insurance , for example income protection in the event of a critical illness.

    If your calculations above are correct you will have free funds to by additional cover.

    Best Wishes
    No reliance should be placed on the above.
  • payless
    payless Posts: 6,957 Forumite
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    As stated this may not be like for like cover ( although it might! )

    With regard to question about commission - Clawback ... most insurance companies will have paid the original adviser/ firm commission - usually taken upfront, but part repayable if policy is cancelled within 4 years ( although with some comapnies its only 2 yrs - a reason why some advisers prefer certain providers >:( , even when premiums higher)

    Whether you are repsonsible will depend on the "terms of business" you signed - although its rare to see that clause these days, - if it is in place, consider whether they also meet their obligations in the transaction
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • Milky_Mocha
    Milky_Mocha Posts: 1,064 Forumite
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    Hi I'm not an expert on this topic and just have a basic question:

    Is it worth taking out mortgage life insurance at all? Isn't it better to take out normal life insurance since in the event of death the dependants can use the money to pay off anything they want, including the mortgage??
    The reason people don't move right down inside the carriage is that there's nothing to hold onto when you're in the middle.
  • dunstonh
    dunstonh Posts: 116,358 Forumite
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    Another reason for the difference is that life premiums have dropped in that two year period but you could be comparing reviewable rates against guaranteed rates. The latter being far more desirable but often more expensive (especially with critical illness built in).
    Is it worth taking out mortgage life insurance at all? Isn't it better to take out normal life insurance since in the event of death the dependants can use the money to pay off anything they want, including the mortgage??

    You take out life cover to cover a need. The mortage is one need. Family protection is another. You may combine two needs into one but it may not be the cheapest way of doing it over the term.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    First Post First Anniversary Combo Breaker
    Another reason for the difference is that life premiums have dropped in that two year period but you could be comparing reviewable rates against guaranteed rates.  The latter being far more desirable but often more expensive (especially with critical illness built in).


    You take out life cover to cover a need. The mortage is one need.  Family protection is another.    You may combine two needs into one but it may not be the cheapest way of doing it over the term.

    I've never seen life cover with reviewable prices. CI cover, yes. Life cover, no.
  • dunstonh
    dunstonh Posts: 116,358 Forumite
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    I've never seen life cover with reviewable prices. CI cover, yes. Life cover, no.

    Many tied companies sell reviewable. In recent years, guaranteed life only cover has become more common but reviewable is still available.

    Its the Life and CI included where the differences are most nowadays though
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • RoyalReccon
    RoyalReccon Posts: 127 Forumite
    You know guys, we need "An Expert's" advice on this one, it is a matter of point of view, but i think we do need someone very very competent on this topic to provide us advice.

    So if any one reading this and think can help, plz do
  • dunstonh
    dunstonh Posts: 116,358 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    You know guys, we need "An Expert's" advice on this one, it is a matter of point of view, but i think we do need someone very very competent on this topic to provide us advice.

    So if any one reading this and think can help, plz do

    advice about what?

    If you are talking about the first post then there is no way to offer any view on the difference as there is insufficient information. We don't know if the difference is due to company pricing, addons, guarantee/reviewable premiums, CI cover with core only or full cover etc.

    Just like home insurance, pricing is not always like for like.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • payless
    payless Posts: 6,957 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    You know guys, we need "An Expert's" advice on this one, it is a matter of point of view, but i think we do need someone very very competent on this topic to provide us advice.

    So if any one reading this and think can help, plz do

    From what I can see 4 people will knoweledge - most likely "expert knowledge" ( and likely classed competent ) replied to this thread - and replied as fully as one would expect on such an open  forum with the limited background information   provided .
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
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