Life Insurance

[andydingdang]

When I bought my house I took advice from an independant advisor , he advised to take out life insurance through BUPA who offer insurance at a garunteed premium. This means I pay more for insurance now but 10 - 20 years down the line I will still pay the same where as non garunteed could be far higher. I currently pay a lot more in life insurance per month than alot of friends and family who own houses and would like advice on whether or not it is worth me continuing this or changing my life insurance to another company that doesn't offer a garunteed premium but is far cheaper.

[Loosehead]

More info required. Is it simply term assurance or is it an Endowment connected to the mortgage? What kind of mortgage have you got? From what you say the policy has some sort of investment vehicle within it. If you simply have a Repayment then all you should need is a simple term assurance. Unclear!

[andydingdang]

It is a term assurance and is to cover the mortgage if either myself or my partner die. It reduces as the mortgage reduces. I have a fixed term repayment mortgage.

[Loosehead]

I see, well sounds like the "advisor" (salesman!) sold you the policy that gave him the most commision. You should be able to get a better deal by shopping around, do a search on uk sites for "Term assurance". The premium should be constant and is calculated to take account of the reducing amount of cover. Looks like the advisor made a big deal over what is a standard approach. Generally Term assurance should be very cheap unless you have health problems or are a smoker or obese etc. Are you comparing like with like with your friends?

[andydingdang]

One problem maybe that I am a non smoker but my partner is a smoker

[Loosehead]

I know smoking can load up Life cover quite a bit. Presumably it's a JLFD policy so it only takes one of you to be a smoker and it will cost.