Beware of cheap life insurance on price comparison sites
As you know, price comparison sites offer to search the market for the cheapest life insurance, and we would like to take a moment to explain why some cheap life cover policies may not be the best for you in the long term.
At Legal & General we aim to be upfront and honest with our customers. We also avoid using small print to hide important information.
Price comparison sites sometimes list a product called ‘reviewable term assurance’ as one of the cheapest life insurance policies for you.
We offer two main types of life assurance, level and decreasing term assurance (for repayment mortgages). Both of which pay a lump sum if you die during the term of the plan. The premium (what you pay monthly/annually) will not normally change during the policy.
However with reviewable term assurance, the premium may increase during the term of the product. This type of policy may be presented as one of the cheapest life insurance policies at the beginning, but it could rise significantly during the term of the policy.
Although a reviewable term assurance policy may seem like one of the best and cheapest life insurance policies at the time, once it has run for a few years it could become less competitive.
The conditions and benefits of a reviewable term policy may differ to that of Legal & General's Level Term Assurance policy, as the term progresses.
Male, non smoker, born 8 October 1967, £100,000 level cover over 20 yrs:
Legal & General: Monthly premium = £12.00
Price on comparison site: Monthly premium starts at £8.73 and typically premiums will increase each year with age throughout the term of the policy.
- This example was taken from Moneysupermarket.com on 1 October 2008.
- Your premium will depend on your individual circumstances and needs.
