Moving life policies

[xrapidx]

Are there any downsides to moving life policies? I keep getting conflicting information. (policy that covers disability, death, dread disease).

I mean - there is no "final payment" should you not claim (until you die ), so why shouldn't you shop around once every year or two?

 

[Drifter]

Because most of the costs are accrued in the 1st year or two. So moving around too often, you just start the cost cycle all over again.

 

[xrapidx]

Because most of the costs are accrued in the 1st year or two. So moving around too often, you just start the cost cycle all over again.

This I don't understand, because the increases are specified upfront? Your benefit increases by x - and your premium increases by y?

 

[Drifter]

Policy charges etc. You move to a new insurer, they have their own set of charges. They not going to take you on for free at Y because you paid X for the policy charges. In some instances , these can be waived though.

 

[pinball wizard]

Are there any downsides to moving life policies? I keep getting conflicting information. (policy that covers disability, death, dread disease).

I mean - there is no "final payment" should you not claim (until you die ), so why shouldn't you shop around once every year or two?

As you get older, life cover costs more and more. Also, the new company's medicals might show up something new, and you pay more.

 

[xrapidx]

Policy charges etc. You move to a new insurer, they have their own set of charges. They not going to take you on for free at Y because you paid X for the policy charges. In some instances , these can be waived though.

That's what I'm trying to understand, because at the moment - every-time I've gotten quotes, they're either lower, or the same as my existing cover.

I plan to move away from Liberty, and the Sanlam cover is slightly less - only one I've gotten that's more is Old Mutual (by about 40% - not sure why their cover is so expensive)

As you get older, life cover costs more and more. Also, the new company's medicals might show up something new, and you pay more.

Yeh - obviously it would be pretty stupid to cancel your existing cover before getting medicals done for new cover.

 

[pinball wizard]

Old Mutual (by about 40% - not sure why their cover is so expensive)

If it's that much it's because you are not comparing apples with apples. The products these days are complex, but you probably have stand alone disability on the OM product and have it set as a rider on the other products.

 

[xrapidx]

If it's that much it's because you are not comparing apples with apples. The products these days are complex, but you probably have stand alone disability on the OM product and have it set as a rider on the other products.

Sanlam's Matrix vs OM Greenlight - busy working through the quotes to see the differences.

 

[pinball wizard]

Sanlam's Matrix vs OM Greenlight - busy working through the quotes to see the differences.

I used to work with Greenlight quite a lot. Let us know what differences you find.

 

[xrapidx]

I used to work with Greenlight quite a lot. Let us know what differences you find.

They're standardize life insurance quotation's this year, aren't they? Should make comparisons easier.

 

[supersunbird]

They're standardize life insurance quotation's this year, aren't they? Should make comparisons easier.

Jip

http://www.moneyweb.co.za/mymoney/m...mparison-of-investment-charges-soon-possible/

 

[Drifter]

You moving from Liberty to Sanlam? Uhhm, ok then.

 

[Drifter]

Jip

http://www.moneyweb.co.za/mymoney/m...mparison-of-investment-charges-soon-possible/

Thats for investments, Life cover and Disability does not fall under the same umbrella.

 

[xrapidx]

You moving from Liberty to Sanlam? Uhhm, ok then.

What's wrong with that? Or are you just a Liberty fan? You get the same comments on just about every insurer.

 

[pinball wizard]

They're standardize life insurance quotation's this year, aren't they? Should make comparisons easier.

As far as I know, the broker can still add disability cover as standalone or rider options. Also, the type of disability and disease cover and the value thereof make a huge impact on premium amount.

 

[xrapidx]

As far as I know, the broker can still add disability cover as standalone or rider options. Also, the type of disability and disease cover and the value thereof make a huge impact on premium amount.

I've seen they refer to it differently between insurers... but I'm basically going for something where the products do not depreciate the value of the others should you claim.

The amounts aren't excessively high, R800,000 dread disease, R3,400,000 life, and R1,900,000 disability - and then income protection. And then the same for my wife, just half the life insurance, and no income protection.

To give you an idea, the quote from Sanlam is about R1,800 - the same from OM is R2,800.

All quotes have age related increases - which still leaves me unsure why some people are so against moving life insurance policies if quotes are better elsewhere. (much like you'd do with short-term insurance) - I still don't get the "risk".

Going to email one of those "lifestyle/money" columnists, maybe they can give a clear insight.

 

[pinball wizard]

I've seen they refer to it differently between insurers... but I'm basically going for something where the products do not depreciate the value of the others should you claim.

The amounts aren't excessively high, R800,000 dread disease, R3,400,000 life, and R1,900,000 disability - and then income protection. And then the same for my wife, just half the life insurance, and no income protection.

To give you an idea, the quote from Sanlam is about R1,800 - the same from OM is R2,800.

All quotes have age related increases - which still leaves me unsure why some people are so against moving life insurance policies if quotes are better elsewhere. (much like you'd do with short-term insurance) - I still don't get the "risk".

Going to email one of those "lifestyle/money" columnists, maybe they can give a clear insight.

Forward them the quotes, because at those values, it still seems like the products are not like for like...

 

[supersunbird]

I've seen they refer to it differently between insurers... but I'm basically going for something where the products do not depreciate the value of the others should you claim.

The amounts aren't excessively high, R800,000 dread disease, R3,400,000 life, and R1,900,000 disability - and then income protection. And then the same for my wife, just half the life insurance, and no income protection.

To give you an idea, the quote from Sanlam is about R1,800 - the same from OM is R2,800.

All quotes have age related increases - which still leaves me unsure why some people are so against moving life insurance policies if quotes are better elsewhere. (much like you'd do with short-term insurance) - I still don't get the "risk".

Going to email one of those "lifestyle/money" columnists, maybe they can give a clear insight.

Don't worry, I also don't get the supposed risk.

 

[pjp]

Like any consumer item purchase, it is wise to shop around now-and-then.
Old style insurance policies - with a cash component - are not recommended.
Keep your risk and investment products separate.
I can advise you concerning the good and bad you need to consider when investigating old-style policies?