Life Question on life assurance renewal procedures?

[Shorty69664]

Hi all,

Just a quick question on life insurance renewal procedures.
We took out life assurance for the puposes of getting our mortgage over 2 years ago. We went through one of the online brokers and were insured with a large, popular company. Now we have renewed on two occasions since but each time the money has just been removed from our account and we have not received any notice. Is this normal? I would have thought they would have to send renewal notices so at least we could shop around for better value.
Just wondering if this is a usual occcurance.

Thanks

Shorty

 

[StevieC]

This is usual. Life assurance and mortgage protection plans are taken out over a fixed term (ie: 20 years). The cost typically remains static from year to year unless you specifically wanted an indexing policy. House insurance/car insurance policies are reviewed annually and prices can fluctuate, hence why people tend to shop around every year for value.

The life assurance market has become more competitive especially this year where prices have actually dropped unlike other forms of insurance. People have realised that they can get the same amount of cover for less simply by availing of new rates. For example, Friends First dropped their rates this summer and Zurich recently followed suit. Traditionally life assurance costed more as you got older but with lower premium rates people are finding value in the market and hence shopping around.



www.CheaperLifeAssurance.ie