Life insurance (booring)

[RickSkye]

Hi
This is realy booring but I expect someone else has gone thru this.
I am trying to get a decreasing term life insurance for a mortgage, and they seem to load it once I mention my passtimes, ie motorcycling.

Has anyone done this and got a good deal?

[Whealie]

Have not reconsidered my life insurance for years. Probably should.

If I were to I'd start by calling Lifesearch because I think they are quite sensible rather than purely about price. 0800 316 3166

Other companies will also try to match your specific needs to the most suitable products. Others just try to get you to buy their product regardless of how inappropriate it is for you.

[Boris]

and they seem to load it once I mention my passtimes, ie motorcycling.

Why mention it then?

My bike is a way to get from A to B which I sometimes use for no other reason than to go for a run.

Most people have a car that they use to go from A to B and often use it to go for a run just for fun.

Unless you were doing some motor sport related activity I can't really see it being relevant. Unless of course they specifically ask you....

[Paul-S]

I work for Legal & General and we don't load it for straight forward life assurance

If you were applying for income protection or certain critical illness cover products some restrictions / exclusions apply if you are racing at a competative level but not for normal use i.e. commuting, social , domestic and pleasure

[Whealie]

Why mention it then?

Because you should mention everything that might be material, even if not asked it.

There is a campaign to get the law rebalanced a bit, but if you know something puts the price up and if you don't mention it the price will stay low, that is not really ethical is it?

[Paul-S]

Why mention it then?

...

It's called "Disclosure"

In reality it's "Non Disclosure" that leads to many people having complaints when their insurer refuses to pay out on something that they may have omitted to tell the insurer up front whether deliberately or not

It also does not help that GPs (who are not underwriters of the risk) tell their patients they have nothing to worry about - "yes you're a little overwieght and your blood pressure's higher than normal" and then the customers don't put this down on an application form

But there are far worse non disclosures

L&G's approach is that we still pay the claim in 97% of circumstances but may reduce the amount for any loading that would have applied to the premiums on others

Other companies take a harder stance and just refuse

[Boris]

Because you should mention everything that might be material, even if not asked it.

There is a campaign to get the law rebalanced a bit, but if you know something puts the price up and if you don't mention it the price will stay low, that is not really ethical is it?

Yes but who decides if its material or not?

If they ask you if you ride a motorbike then you have to answer honestly but if they don't ask what else should I offer.

Walking the dog?
Crossing the road?
Cycling?
playing rugby?
Hill walking?
Horse riding
mountaineering?
Hang Gliding?
Chav Baiting?

All of these things carry a risk but would I be expected to disclose them and if so which ones?

[RickSkye]

There is another point about disclosure, I am getting life insurance to pay out if I die, for piece of mind, so that the wife can keep the house.
I want to be confident that they will pay out, and not find some getout clause.

I would think it is up to them to ask the questions, but, a look at the terms and conditions may add clauses thay have not asked about, don't know how you would stand then.

[Whealie]

Yes but who decides if its material or not?

You cannot buy life insurance -event he cheapest, ****tiest (which I would not recommend) online variety without ticking a box that says you have read and understood all the terms and exclusions and everything.

Obviously we all tick these boxes everyday having never read them, but the regulator the FSA's argument is you shouldn't be ticking boxes if you have not read those terms. You lose your right to say you did not know because you would have done if you had read and understood all those sub-clauses

If you have read those terms you will know that certain things are excluded.

Alternatively you go to a professional adviser who listens to all the things you have to say and tries to find a policy that best covers your needs in your circumstances.

Its the same with all insurance.

I fail to understand why people will shop around for the cheapest insurance, even though it will be worse, cover less, have a higher excess and a slower claims process.

Nobody just says I want a motorbike so I'll buy the cheapest. You buy the bike that best suits you. Insurance is exactly the same - there are loads fo different models for different people - and some cheap Chinese imports.

[Boris]

You cannot buy life insurance -event he cheapest, ****tiest (which I would not recommend) online variety without ticking a box that says you have read and understood all the terms and exclusions and everything.

If you have read those terms you will know that certain things are excluded.

My point exactly. It's up to them to tell me (either over the phone or in the contract) what the exclusions are and not for me to offer them ways of bumping up the premium because I feel my lifestyle might add additional risk.

The answer is read before you sign.