Switching life assurance regularly

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denk15
denk15 Posts: 43 Forumite
in Insurance & life assurance
Hello money savers


I have a question on switching life assurance regularly and the pitfalls


I took out life assurance over a year ago now (Had a child and bought a house)


I have noticed on popular cash back websites, that there are large amounts of cashback for life assurance policies (£130 roughly for the premiums I would pay)


My question is, what are the pitfalls in switching life assurance regularly? (Every year or 2). I understand that as I get older my life assurance premiums would increase if I were to switch, but at the moment from the quotes I have gotten, the premiums are the same as my current cover


So if the premiums are roughly the same, what would be the harm in switching to get the cashback offers up until the point where an increase in premiums would not make it worthwhile?


I have level cover over 35 years if that is relevant


Disclaimer: I know cashback is not guaranteed


Thanks for your help

Comments

  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    My question is, what are the pitfalls in switching life assurance regularly? (Every year or 2). I understand that as I get older my life assurance premiums would increase if I were to switch, but at the moment from the quotes I have gotten, the premiums are the same as my current cover

    None as long as you remain in clean health and dont set the term at 2 years each time and its only life assurance (and doesnt include any other bolt ons such as critical illness cover).
    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.
  • HappyHarry
    HappyHarry Posts: 1,588 Forumite
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    If you find it cheaper for the same cover, then there's nothing wrong with switching.

    It's usually best to make sure that the new policy is in place before you cancel the old policy, in case any issue comes up in underwriting.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    once you hit 40 the costs go up significantly. You won't be able to keep switching indefinitely.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
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