Life Assurance

Y

yendor

Guest
Hi,

last year I took out a Life Assurance policy with a well known Agent/Broker. The beauty was that the first year costs were effectively nil.

Now I've received the new premium for the year at full whack. What's the downside in simply dropping this policy and triggering a new one, again with the first year for free more or less.

Both myself and the missus are in our 30s, non smokers so in that sense we're good risks. I appreciate that we wouldn;t be able to do this forever and at some stage be it turn 40/50/whatever companies might refuse cover, or charge additional. Though I would expect that they might do that anyway regardless of me building up 10+ years with them.

I can't see anything wrong with continuing this pattern for the next X years, thereby saving 500+ euros each year.

Am i missing something ?

TIA
 
G

Guest

Guest
Is this a mortgage protection life assurance policy or a standalone policy? In either case I can't see why there'd be any problem in shopping around for a better value policy and ditching the old one. If it's mortgage protection then you'll need to keep your lender informed. Were you not told what the normal (year two onwards) permium would be when you took out this policy and/or did you not ask at the time?
 
R

rainyday

Guest
As you get older, you are more likely to be declined cover or offered special terms for health reasons.
 
G

Guest

Guest
Yeah. I meant switching cover now on a once off basis if the existing cover premium is outrageous - not attempting to do this each year or few years as a cost saving measure. I don't think that life assurance tarting is really a workable strategy in the medium/long term!
 
Y

yendor

Guest
As far as i remember its a standalone policy - i have a seperate Mortgage protection policy. I'll check it again tonight now that you've asked - thanks!

On your second point, I was informed as to future prices; it was a reasonable price compared to other premiums ... however at the time I did wonder about dropping after year 1, but it wasn't really relevant until now.
 
Y

yendor

Guest
Checked at home .. this policy is seperate to my Mortgage Protection Policy, so no involvement with my
lender.

I still can't see any flaws in this:
such that this year I sign up with Convertible options built-in, take advantage of the generous discount, and next year if there's similar deals available move on. If not I stay with the current provider.

Sure there's an element of 'tarting' - but people are doing this all the time with their mobile phone providers, and mortgage providers - I don't see it as a bad thing for competition for more of this ... is'nt this is what free market is all about ?

Thanks for comments thus far!
 
G

Guest

Guest
But as you get older the life assurance premium that you are quoted will most likely increase. There may be some savings to be made by "tarting" in this way but I'd say that they are limited. Shopping for a mobile phone service or a credit card is not really comparable to shopping for life assurance.
 
L

Lumina

Guest
yendor, just a thought. If the intermediary / provider Blocked your attempt to reapply for discounted cover, 'could' you view this as an anti competitive practice?
 
Z

zinger

Guest
Quote

Get a couple of quotes , pick the one you feel would be the most valuable / affordable to you. Inform your current broker and tell them to (at the very least) match it otherwsie they will lose the business to ABC Ltd.
No one can argue with that............
 
Y

yendor

Guest
Hello again,

current Provider quoting over 650 euros for 300k protection - a 70 euro increase on last year's premium.

Another provider quoting 530, but discounted for the first year so I pay 2 euros!

best other quote I could get was 300+

Can't argue with 2 euros !
 
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