I am starting as an insurance agent for a new company where I will be selling Life, Critical. Illness and Income Protection cover with a difference. The difference is that if you do not make a claim within the term of the plan you get ALL your premiums back! At first I thought it would make the premiums a lot more expensive but it really doesn't. I won't say too much about the company other than it is one of the largest Insurance companies in the world. It seems too good to be true, I wondered "what's in it for them?" but obviously they are investing these premiums over the years and will make money for themselves. At the end of the day if you have insurance with any other provider you don't get a penny back anyway, so what have you got to lose?
I will be starting next week and am looking for people to contact to discuss this further without obligation. I am hoping that anyone from this group would send me a private e-mail with any questions with a view to me giving them a telephone call next week. So come on stop throwing away your premiums and end up with a nice lump sum instead.
It is term assurance and there is a wager element I suppose to some extent because as I say the company will make a profit over the term anyway by investing the premiums. Feel free to reply personally for a quote.
So does every other life company so there's no benefit here.
A simple exercise suggests that this just cannot fly. Either the premiums will be very uncompetitive, the pay-outs will be lower or some years down the line we will have an insurance company with a promise that it finds it cannot keep. There is no spare money floating around in the life insurance pool to pay for this.
OTOH, were somebody to do the same thing with Travel Insurance, I'd seriously consider the product, there's a stupid amout of fraudulant claims which can be squeezed out and there's likely be a pool of purchasers who are unhappy that 20% of their current premium ends up in the pocket of Jonnie Cheater.
Insurance companies in the WORLD. The company has been around for 70 years and has a AAA rating. It is fully regulated in the UK by the Financial Services Authority (FSA) and listed on the London, New York, Japanese and Swiss stock exchanges with operations in 130 countries worldwide. Insurance companies regulated by the FSA must always maintain a certain level of Capital in order to pay out these types of insurance to their customers and this is strictly monitored. As far as prices are concerned I will give you an example:
30 year old male non-smoker, 25 year term, 100,000 life cover would only cost just 17 per month and at the end of the term a tax-free lump sum of
5,100 would then be paid back to the customer (equivalent to all contributions). All that is asked is that the premiums are paid until the end of the term. As you can see from this example the rates are very competitive and even if you can find it cheaper consider this: You pay 15 for 25 years, you have paid in a total of 4,500, you get nothing back anyway. Contact me and I will give you an accurate quote for yourself or your friends/family.
TheIdol.com show L&G as being as little as 7.48pm.
Let's see: if the difference of 9.52pm were saved in an account earning around 4.5%pa interest on average over the 25 years (let's assume it's tax-free, eg you top-up your contribution to your ISA - assuming you're not already up to the limit), then at the end of 25 years you will have paid
7.48pm for the life cover (nothing returned) plus 9.52pm into the ISA which is now worth .... around 5,200!!
So, being able to earn only 4.5%pa on the difference makes "financefan"'s deal look poor. If interest rates rise over the next 25 years, his deal is even worse!
This is a rip off. That premium is double what you can get form an IFA. You are selling a Unit Linked Whole of Life Plan in which the Life Company gets the profit on the investment. Its a rip off and because the insured isnt getting any 'investment' element it can be sold as an unregulated product through unqualified salesmen. I suggest that a client should buy some cover from an IFA and but the difference between that premium and the premium you quote in a mini cash ISA. At the end of the term they will be in the same position.
Presumably you are a commission agent for an office which acts as a broker who deals with an intermediary who sell the products of the 70 year old company. And presumably if anyone except the 70 year old company misleads the customer, the customer has no chance of a suitable settlement. Imo there are too many links in the chain. and imo your posts are contradictory and misleading.
"DP" wrote in message news: snipped-for-privacy@karoo.co.uk...
Thanks for your comments. I am not a broker, I work directly for the company in question and would therefore only recommend that company anyway so I am not misleading anyone. As far as this policy being a rip-off, well that simply is not true it is a means to help people like you and I get back the premiums that they would otherwise not get back if they paid them to other insurance companies for the same (if not better) cover. As far as one of the previous posters comments about getting a better return on your money if you took a cheaper insurance with another company and saving the difference in a mini cash ISA for 25 years, more than doubling your money, well get your calculators out, it is complete nonsense. In addition, the government will be getting rid of ISA's in 2 years so this would not be an option anyway. I would also like to point out that 'cheap' insurance is not always the best. You must look at the big picture. 9 times out of 10, if the quote is so cheap when it comes to actually getting the insurance they will find some way of loading the premiums due to health reasons (or anything else they can think of). Another thing to consider is that in the future if the premiums are so cheap in the beginning, it is likely that they will raise the premiums in later years to compensate. Let me tell you how premiums are calculated - If a person is young the actual 'cost of insurance ' may be 1 per month then when a person is old it may cost say 20 per month (these figures are calculated by actuaries taking into account a whole misread of different things) So what happens in the end is that an average figure is taken over the whole term of the plan to make it as affordable as possible without the likelihood of their premiums being increased. Another factor in deciding what company to go to is their customer service and efficiency. It may be OK for some people to just click on the cheapest company on the internet and they may well be happy with that but I provide a personal service because I deal directly with the customer myself, taking the time to find out what they want the insurance to do for them, helping them calculate how much insurance they actually need and help them to fill out paperwork, etc... I make sure that they understand what they have taken by explaining it to them properly. Also I keep them updated on the progress of their application, which is something that seems to be lacking with internet providers. The customer always has my direct number so that they have a point of contact for future reference instead of being 'just another number' routed through a call-centre somewhere. As I have said before the prices of premiums that I do are not expensive, as they say if you pay-peanuts - you get monkeys, do you buy the cheapest car, the cheapest house? Cheap is not always best.
Yes, and I explained that is was like a whole of life with the Life Co merely paying the fund back. And when you said that I had said exactly what you had said, I was merely pointing out that it wasnt.
Why? You need 2.8% after tax over 25 years to double your money. I can almost get that my current account ...
Interest rates are on the way up - at least in the medium turn.
The mini-cash ISA allowance will go down to 1000 pounds from 2006.
Not in my experience. I got joint life cover for myself and my wife at very competitive rates without a health check. In my own case ... my health is pretty average - I'm certainly not super-fit.
No. The premiums for the quote you were given would be guaranteed for the term (as it was very similar to the quotes I got).
Some people may appreciate that, but is isn't rocket science. My internet broker followed up with letters and phone calls and kept me informed of everything I needed to know. In addition, a fee-based IFA would be able to give impartial on the matter too.
Not quite. If you invest a one-off sum at 2.8% then it will double, but we're talking about premiums, which are paid throughout the period. If you pay £10 a month into a 2.8%pa investment, then after
25 years, having paid in £3000, you won't have £6000, but only £4337.
To double your money over 25 years, you need 5.17%.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.