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UK Life Insurance Information

Guide ___________________Quotes

Like many personal finance "products" there are different names for what are essentially the same thing.

The following list refers to the most common terms for personal insurance.

Click on the links to access the guide to each subject.

Life Insurance

Critical Illness Insurance

Long Term Income Protection

Mortgage Payment Protection Insurance
AKA Accident, Sickness and Unemployment

Mortgage / Life Protection

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Insurance 'tie ins" / bundling 

What are they?

Aren't they illegal?

Possible benefits of bundling

 

What are they?

The mortgage market is highly competitive. The lenders try to sell you their mortgages with attractive cut-price interest rates.

To compensate for their "loss leaders" they'll try to sell you their insurance policies.

It won't be accidental if buying their insurance seems to be part of the deal.

If they actually charged you a penalty fee if you insure elsewhere, this would be a "tie in".

Tied in insurance policies are very unlikely to be the best buy, especially if the interest rate on the mortgage looks like a bargain.



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Aren't tie ins illegal?

No they're not. Despite a myth doing the rounds that tie ins have been made illegal. It's not true.

If you need clarification on this issue call the Financial Services Authority helpline on 0845 606 1234.


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Benefits of tie ins / Bundling

Sometimes cheaper insurance policies may not give you the same level of cover as the more expensive ones.

It might also be good to keep everything "under one roof".

Some lenders can help you avoid postcode discrimination by making all their insurance "block policies".

This means everyone pays the same regardless of where they live. (To see if it's worth it simply get a quote for your postcode and compare it.


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