Level Term Life Insurance Guide Discussion

Bmister · 23 January 2019 at 2:37PM

I’m new to the forum and therefore apologies if I am not using it correctly.

I was hoping to see if anyone had advice on the potential for lifestyle reviews by insurance for a life assurance product.
In brief, we mortgaged when I was pregnant, and my premium increased by £5.00 per month after, my Gp and not the insurance company, informed me that is due to slightly high cholesterol level.
Due to clear statistical evidence of cholesterol being higher in pregnancy and now seeking to demonstrate its lower, I’m told I’m not entitled to a lifestyle review due to my age (41) which seems a bit harsh, especially as I was pregnant at the time of assessment.
Any advice of where I could seek further advice or other similar experiences would be very much appreciated

Kind regards

dunstonh · 23 January 2019 at 2:51PM

Any advice of where I could seek further advice or other similar experiences would be very much appreciated

Life assurance is arranged as a snapshot of your health at the point of application. If you believe this is no longer an issue then apply for a new policy.

Weighty1 · 23 January 2019 at 3:19PM

Bmister wrote: »

I’m new to the forum and therefore apologies if I am not using it correctly.

I was hoping to see if anyone had advice on the potential for lifestyle reviews by insurance for a life assurance product.
In brief, we mortgaged when I was pregnant, and my premium increased by £5.00 per month after, my Gp and not the insurance company, informed me that is due to slightly high cholesterol level.
Due to clear statistical evidence of cholesterol being higher in pregnancy and now seeking to demonstrate its lower, I’m told I’m not entitled to a lifestyle review due to my age (41) which seems a bit harsh, especially as I was pregnant at the time of assessment.
Any advice of where I could seek further advice or other similar experiences would be very much appreciated

Kind regards

Most insurance companies DON'T offer lifestyle reviews on their plans. As mentioned above, they take a snapshot of your circumstances when you apply and the terms offered are normally guaranteed for the full duration of the plan. This works both for and against the insurer. For example, people's whose health improves still pay a higher premium but are a lower risk but those whose health deteriorates still pay the same premium and aren't penalised.

All you need to do is reapply to either the same or an alternative insurer and your circumstances will be looked at at the date of application and taken from there.

kingstreet · 23 January 2019 at 4:26PM

... and be careful not to cancel the old one until you have acceptance terms and have commenced cover on the new one!

Snowee · 7 March 2019 at 8:33PM

We had an interest only mortgage. Took out a stocks and shares ISA , included in the monthly premium to be invested was life insurance with critical care cover. The monthly investment amount planned to pay our mortgage at the end of the period would never go up, however, the life insurance went up eating into the monthly amount invested. Eventually we were paying a lot into the life insurance and not much of the monthly investment i.e. the investment that was supposed to pay off the mortgage at the end of the term had no chance because most of it was been eaten by the insurance which kept on going up buying less shares. We waited until the FTSE 100 started to rise then we had to cash it in as there was not enough money being invested.
We were sold the insurance and never told it would go up eating into the amount invested. If the insurance was not attached to the ISA but seperate payment we would have bought more stocks and shares each month, not forced to sell and had a lot more investment. Firstly we should not have been sold a interest only mortgage and secondly we had no chance of the investment paying out when the hidden life insurance was going up every year! Do you think we have a case to claim from the company who sold us this stocks and shares ISA?

dunstonh · 7 March 2019 at 8:51PM

The monthly investment amount planned to pay our mortgage at the end of the period would never go up, however, the life insurance went up eating into the monthly amount invested.

Were these two different plans or one single payment?

We were sold the insurance and never told it would go up eating into the amount invested.

In most cases they dont as the plans were not linked. The way you describe yours does not sound normal.

secondly we had no chance of the investment paying out when the hidden life insurance was going up every year!

How was it hidden?

Do you think we have a case to claim from the company who sold us this stocks and shares ISA?

How long ago did you sell the investments? You have three years from being reasonably aware of an issue to raise a complaint. After that, the company can bar your complaint with no access to the FOS.

I am concerned about your description as it doesnt match the generic methods for combined or individual plans.

It may have been better to start your own thread rather than posting on one unrelated to your scenario.

utopiah · 30 July 2019 at 9:43AM

Hi I'm after a bit of advice about decreasing mortgage life cover. We have been overpaying our mortgage for 5 years now and now only owe £3500. We are hoping to clear most of this but leave £50 on the mortgage so as not to incur early redemption penalty. As it stands our mortgage payments are £45 per month but so is our life insurance. It seems silly to me to carry on paying this. If one of us dies we would be able to clear mortgage with savings we have about £10000 or we could easily just pay £45 per month. So advice cancel or keep life insurance?

SonOf · 30 July 2019 at 10:39AM

utopiah wrote: »

Hi I'm after a bit of advice about decreasing mortgage life cover. We have been overpaying our mortgage for 5 years now and now only owe £3500. We are hoping to clear most of this but leave £50 on the mortgage so as not to incur early redemption penalty. As it stands our mortgage payments are £45 per month but so is our life insurance. It seems silly to me to carry on paying this. If one of us dies we would be able to clear mortgage with savings we have about £10000 or we could easily just pay £45 per month. So advice cancel or keep life insurance?

Nobody here is going to give you advice. It would be a very dangerous thing to do. They could say stop it and then you suffer a claimable event shortly after.

We do not know your financial circumstances. However, most people in the UK are under insured for life assurance. So, whilst you may not have a mortgage need any more, there may be other needs you have (salary replacement, reduced pension etc).

Plus, are you sure about the ERC being avoided if you leave £50 in? Most lenders charge their ERC against the value of the balance remaining. So, if there £50 and say your ERC is 2%, then the ERC would be £1. Hardly worth the effort.

utopiah · 30 July 2019 at 12:20PM

SonOf wrote: »

Nobody here is going to give you advice. It would be a very dangerous thing to do. They could say stop it and then you suffer a claimable event shortly after.

We do not know your financial circumstances. However, most people in the UK are under insured for life assurance. So, whilst you may not have a mortgage need any more, there may be other needs you have (salary replacement, reduced pension etc).

Plus, are you sure about the ERC being avoided if you leave £50 in? Most lenders charge their ERC against the value of the balance remaining. So, if there £50 and say your ERC is 2%, then the ERC would be £1. Hardly worth the effort.

Hi thank you for your comments. We have a penalty charge if we pay before March 2022. This charge is £3400 however we can make unlimited over payments as long as we leave something on the mortgage and yes £1 would be ok. I guess we have to weigh up the risks of stopping mortgage life insurance. We obviously would need some sort of life cover and need to look into this.

lsmh20 · 20 December 2019 at 2:57AM

Is it possible to transfer my life insurance policy to another company?
I took out a policy in 2005 at just over £25,00 a month for a £100,000 policy with Direct Line originally. The company changed hands I am not at all happy with the lack of communication and the attitude I get when I ask questions or request information.
I am covered for terminal illness and accidental death. Will my family only get a pay-out if I only die in either of these two ways?
Is it possible to transfer my life insurance policy to another company? If so, how do I do this?

Level Term Life Insurance Guide Discussion

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