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Original poster

Life cover - am I about to be stung? £70 per month for a below av. m/g amount

40 replies

Walnutshell · 30/03/2007 12:57

I'm just hesitating over a Bright Grey application form I planned to post today. Have been with B/Grey for 2 yrs and happy to stay with them, BUT! Moving house very soon so obviously had cover reviewed - via an FA employed by the company who previously arrangeed m/g and b/grey cover.

OK, m/g was £106K, life prems were £31.50.
Now m/g due to increase to £138K, prems to a whacking £69.

This is over a longer term, but dh has good life protection and pension through work.

Can't understand why so massively increased and as our initial income will be massively DEcreased, am keen to make sure I'm not shelling out on premiums!

Thanks x

OP posts:
lulumama · 30/03/2007 12:59

i pay a lot less for a lot more cover with scottish widows......

Tinkerdumpsandruns · 30/03/2007 13:01

is this just life or does it include critical illness? the cic will whack it up.

also - is it reducing over life of mortgage = cheaper

NoodleStroodle · 30/03/2007 13:03

Seems a bit of a hike..in those immortal words have you "shopped around". Also was your adviser independent? If not he might not have got you the best deal on the market.

Tinkerdumpsandruns · 30/03/2007 13:06

Yes, definitely shop around. How old are you?

Original poster
Walnutshell · 30/03/2007 13:06

Thanks guys.

Well, no, not really shopped around mainly because I find the whole thing totally confusing.

It does include CIC.

Reducing over life of m/g - um, yes I think so. That makes it seem more expensive then maybe???

OP posts:
Original poster
Walnutshell · 30/03/2007 13:06

32 in May. Dh 32 in Oct.

OP posts:
lulumama · 30/03/2007 13:07

we have always done stuff like this through an IFA, as it is a minefield but they talk you through it and sort you out a good deal , and there is no charge!

hana · 30/03/2007 13:09

I am also with scottish widows and for just life cover, I pay less than a tenner. This only covers mortgage though, and just me, not dh and me.
hth

Original poster
Walnutshell · 30/03/2007 13:09

Our FA works for a company called Harmens Financial Advisers. Stupid question - does the absence of the word 'independent' mean they aren't?

OP posts:
Tinkerdumpsandruns · 30/03/2007 13:10

Reducing over the life of the mortgae will make it cheaper. But the critical illness (you being a woman and likely to live a long while as well) do whack it up. My best quote inc critical illness was about £50 to £60, I think. Life on its own is £12. Went for that

Also, depends on length of your loan as well - longer = dearer

lulumama · 30/03/2007 13:11

possibly ! it might mean he is tied to particular products or services....

Original poster
Walnutshell · 30/03/2007 13:11

I really need someone to look at dh's work cover and give us a realistic assessment of what we need. Don't want to realise in 25 yrs time that we have been over-insured.

OP posts:
Original poster
Walnutshell · 30/03/2007 13:14

Life of mg is 33yrs but only 'temporarily' as losing my wage in relocation. Would hope to reduce to 25 yrs max within next ten yrs (IYSWIM) plus dh due lump sum in 20 yrs...

OP posts:
Tinkerdumpsandruns · 30/03/2007 13:18

If 33 years atm = longer to get ill/die = dearer.

We did ours online, didn't use a person at all - look on moneysupermarket of moneysavingexpert

Dinosaur · 30/03/2007 13:20

A lot of workplaces don't give you critical illness cover - mine doesn't.

Ladymuck · 30/03/2007 13:23

You do know that there is no rule that says that you have to have life cover precisely matched to your mortgage, don't you?

Life cover and critical illness cover shouldn't just be based on what your mortgage is - you should be looking at what would happen if either of you died or became critically ill, and considering what additional protection you would need in those circumstances. That would also affect the term etc (eg you will need more cover whilst you have dependent children, but would need less cover later).

Your mortgage commitment is one thing to consider when looking at the overall cover needed, but it is only one factor. Due to both dh and myslef being entitled to substantial lumps sums through work we have at times had substantially less additional life cover than our total mortgage. Right now as we have young children our life cover is more than our mortgage.

NoodleStroodle · 30/03/2007 13:23

I don't know whether they are independent or not. It sounds like you need to check - their letters will probably have something about that if they are. You need to see someone to check that between you and DH you have enough or not too much cover and that you are covered for all eventualities.

Lulumana there will be some sort of charge - these guys don't do it through the goodness of their hearts! Either you will pay a fee or they can take their charges from any commission they recieve on products you buy.

And of course if you have a mortgage you will have sorted your wills...

lulumama · 30/03/2007 13:24

yes, i realise there is a charge...but i don;t pay him , he takes a commission from the policy or mortgage or whatever i choose!! not coming directly out of my pocket !

but as an IFA, he can sell the best thing for me!

NoodleStroodle · 30/03/2007 13:28

lulu - just checking!

moneysupermarket are good if you want to do it yourself and unbiased if you don't

lulumama · 30/03/2007 13:31

no worries noodle ! !!

Original poster
Walnutshell · 30/03/2007 13:38

I understand that you don't need to match cover to m/g but I don't really know what a reasonable amount of cover looks like to the average Joe. I mean, I think we need to cover m/g fully and use work benefit to live on for medium-term (it would cover current dh wage 5yrs plus of course we wouldn't have m/g payments so in reality this would last longer).

On phone to B/grey now.

Having inner flap!

OP posts:
NoodleStroodle · 30/03/2007 13:41

When on phone ask if they are INDEPENDENT

NoodleStroodle · 30/03/2007 13:46

Hope the capitals aren't shouting - just meant to be a little reminder. Oops

Original poster
Walnutshell · 30/03/2007 13:53

LOL!

Was on phone to actual proivder of cover rather than FA.

So, when FA rings back later I will shout, "ARE YOU INDEPENDENT? NOODLESTROODLE WANTS TO KNOW!"

Bright Grey say cheaper (in this case) to start new a/form again rather than submit alteration (as we were doing) - by £10 per month which personally I think is quite a lot esp over 33yrs.........

OP posts:
lulumama · 30/03/2007 13:54

AND LULU WANTS TO KNOW TOOOOOO!!

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