I think life assurance companies play on your fears. Do you really need it?

Another issue is that a tied Agent is not a Broker.

He/she can only sell one companies range of products, irrespective of how competitive or otherwise they might be.

I agree on a couple of the op's points about investing in living, time off, kids, etc. That's all good stuff. But saying "....But life is for living, not for hoarding away cash that you'll never see anyway cause you'll be dead and hopefully by that time your kids will be financially secure" is profoundly naive.

Paying for Life assurance isn't hoarding money away, it's about protecting against premature death, and providing for your dependants should this happen.
 
RS2K said:
I agree on a couple of the op's points about investing in living, time off, kids, etc. That's all good stuff. But saying "....But life is for living, not for hoarding away cash that you'll never see anyway cause you'll be dead and hopefully by that time your kids will be financially secure" is profoundly naive.
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It's how people think when they're young and single...21 and bulletproof. Give it a few years!
 
Unfortunately I know of a few families where one of the parents died while the children were under 20, and life insurance made the difference between dealing with a terrible financial situation at the same time you were dealing with a dreadfull emotional situation, and just dealing with a dreadfull emotional situation.

I agree about the hard sell, we are in the middle of a remortgage, and the bank have been very keen for us to meet with their insurance salespeople. But we just said no. Straight life assurance, with no income protection, is quite cheap. Mortgage cover for 130k for two adults (one smoker) is coming in at ~€250 a year, which is not a lot for peace of mind.
 
This gripe is more about sales methods than life assurance. Pressure salespeople come across in all aspects of life and there is a way to deal with them. A good salesperson communicates information well to enable the consumer to make a choice.

With regard to Life Assurance and similar products this is now heavyily regulated to protect the consumer. Also look at an Independent financial advisor who will work for your best interests. He has to paid for his advice and skill like everyone else.

Assurance/Insurance is a vital protection, the level depends on each persons circumstances. Some People only really see the value when the event has happened and then bemoan the fact they werent made aware of it by the Government, The Insurance Industry, their aunty/uncle etc.
 
Rico said:
This gripe is more about sales methods than life assurance. Pressure salespeople come across in all aspects of life and there is a way to deal with them. A good salesperson communicates information well to enable the consumer to make a choice.
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I agree - I think that this (the marketing and sales approach) is more the nub of this specific complaint than the products themselves which are obviously relevant and applicable to some people.
 
Owner occupiers (with some minor exceptions) are legally obliged to have mortgage protection life assurance in place under the Consumer Credit Act. I'm not sure what happens if you let the cover lapse but I presume that the lender will be informed (e.g. by the LA underwriter) and they will act to ensure that the borrower restores the cover.
 
Yes as the assignee (owner) of the mp policy the lender will be informed of lapsed premiums by the insurer.
 
But what can they do to force cover to continue? They can hardly repo the house if the payments are up to date?
 
bond-007 said:
But what can they do to force cover to continue? They can hardly repo the house if the payments are up to date?
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As Clubman said it's an offence under the Consumer Credit Act not to have a mortgage protection policy so you'd end up in court without a leg to stand on.
 
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