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5 things to be wary of

Number 2

No separate premium for smokers

Number 3

The bank wanting you to take insurance with them when you do your mortgage


As a group, smokers have more claims for "life insurance"-type policies (including medical insurance) than non-smokers.

Therefore, if there is no differentiation in premiums between smokers & non-smokers, the non-smokers are paying more than necessary to subsidise smokers. You may find this particularly with some medical insurance policies.


Number 1

Guaranteed Acceptance

While the bank may suggest you take mortgage cover with them, they cannot imply that you must​ take it with them.

In fact, they cannot even insist you take cover at all.

While some bank products are OK, you will often be able to get either better cover for a similar premium or similar cover for less if you talk to your adviser.

After all, they can research the market to get what is best for you!


There could be one of two reasons to be wary of the term "guaranteed acceptance".


1.If the policy is a "funeral plan" as you may see advertised from time-to-time, it usually means that full cover doesn't start until 2 years after you take the policy out. Until then you will only get a refund of the premiums paid.

2. Other types of policy might have guaranteed acceptance, in which case the healthy people will be paying a higher premium than they need to as they will be subsidising those who are not as healthy and who would normally have to pay a higher premium

Number 4

Dealing with an adviser who has to put a % (sometimes 100%) of their business with one insurance company.


Some insurance companies run their own teams of advisers. In these cases, the adviser is limited to the covers available with that company.

Some advisers have special agreements with one company whereby they are required to place a minimum % of their business with that company in return for higher commissions.

In both these cases, can you be sure you are getting the solution that's best for you?

It is usually better to deal with an adviser who can select the best option for you, no matter which company that's with.

Number 5

Buying without advice

Straight death cover is reasonably straightforward - you're either alive so you need to pay your premiums or your dead and the insurance company pays out.

But how much cover is really the right amount?

And when it comes to any sort of disability cover;

Is it best to have

      One that pays a lump-sum amount (again what's the right amount?)

      Or is it better to have one that pays a benefit each month?

      Or a combination of the two?

And which company and individual mix of products will give you the payouts that meet your individual circumstances?

Why not check out how a qualified adviser can help you sort out the best plan for you by clicking on The Adviser's role link below or finding an adviser near you here ->