Paying Too Much for Life Insurance say London & County
London & County, who claim to be the UK’s leading no-fee mortgage broker, says that borrowers are paying too much for life insurance from their banks.
Indeed, they go on to say that there are some high-street banks in the UK who are charging double the amount for their life insurance than if they were organising it via an independent broker, or general insurance company.
And London & County, to prove their case that by paying too much for life insurance consumers are being not treated fairly, have released an example.
Take life insurance for a man, say aged 30, and covering a mortgage worth some £150,000. For that, HSBC would at the time of writing charge £17.05 a month. And RBS, again at the time of writing, would charge £15.95 a month.
Yet, for the same cover, Aviva would cost £8 a month at the of writing, and even better, Legal and General would put you back only £7.73 a month at the time of writing. And those differences translate into yearly savings of around £100, or over £2,500 if taken over the 25-year life of a mortgage.
Which seems to prove the case that people are paying too much for life insurance from their banks, and should shop around.
“Anyone who has bought life insurance from their bank should review whether it represents best value for money. The simplest way to see if they could save money is to use L&C’s hminute Life Insurance Check calculator This will show them quickly if their current premium can be beaten for equivalent cover. Anyone currently applying for a mortgage via their bank should get independent quotes for life insurance – the savings could be substantial.”
Incidentally, to help judge whether London & County are right in their view that people are paying too much for life insurance, they have won a number of awards, including:
- Best Mortgage IFA/Adviser of the Year – Money Marketing, 2004, 2005, 2006 and 2008
- Best Technology Adviser – Money Marketing 2007
- Best Mortgage Broker outside London – Mortgage Strategy, 2004 and 2005
- Best National Broker – Mortgage Introducer 2005, 2006 and 2007
- Best Overall Broker – Mortgage Introducer 2005
- Overall broker of the year – Pink Home Loans, 2006 and 2007
- Top 100 company in the Sunday Times Fast Track 100 for 2004 and 2005
- Business of the Year – The Bath Business Awards 2005
- Growth Strategy of the Year – National Business Awards (Wales and West) 2008
- Business Leader (Broker) – British Mortgage Awards – 2008
- Online Mortgage IFA of the Year – Financial Adviser – 2008
So, if you’re convinced that people are paying too much for life insurance, talk to London and County and others like them.
Guest Article by Neil Camp
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My name is Alan Potts and I'm the Editor of the BUYability web site and Managing Director of BUYability Limited. You can connect with me or keep up to date with new posts on this blog via the following social media sites: 
