OK some topics aren’t exactly exciting but this is supposed to be a financial blog after all.
Carrying on with the direct offer by post theme, Legal and General recently sent me an offer for whole of life insurance. The deal is that I am guaranteed to be accepted, but if I die from natural causes in the first two years it doesn’t pay. Also, if I lived to the age of 90, I don’t have to pay premiums thereafter but the cover remains in place.
Looking at the rates on offer, compared to standard rates I can obtain in the market, I see that as a healthy non-smoker, I can obtain more than double the cover with Legal and General themselves on the same type of plan for the same price. However, that route involves underwriting and a lengthy application form.
So whilst a plan like this is poor value for a healthy person, I guess it could well be attractive to somebody in less than good health, so long as they are not at death’s door.
And if you sign up you get £50 worth of M&S vouchers as a “birthday gift”. Yippee. Only it will take at least three months to arrive.
So to re-cap, if you’re not in good health, want to insure your life, and fancy a socks and underwear shopping spree, you might want to sign up. But I recommend that you speak to an IFA first, as the simple route isn’t always the most economic.