life assurance DOs & DONTs

snipem

11 years ago i took out a mortgage with First active and am happy with my house and mortgage repayments, but when i took out the mortgage they told me i had to take out life assurance with their parent company FRIENDS FIRST, They have been taking 49euro a month for the past 11 years and now i have just found out they have been taking me for a ride, i have been on to 3 different companys and each have told me i didnt need half of the assurance they were taking. when i rang and challenged them about this they said i took the policy out through First active and it was all on them. First active are no longer in business. so i asked if i could get any refund and FRIENDS FIRSTs answer was no way. i have now moved to a new company who take just 26euro per month and i have more cover. so shop around, you dont have to take your mortgage companys own assurance you can go elsewhere, and for gods sake stay clear of FRIENDS FIRST. Kevin :mad:

Pablo Sanchez

Friends First was not the parent company of First Active. First Active were tied agents of Friends First which means that First Active were allowed to sell their policies. It would have been a First active advisor who sold you the policy.

Without more information its hard to say if you were miss sold your policy, remember that there are many types of Life Assurance and depending on the features of the policy you will pay more or less. Just becasue they didnt sell you the bottom of the line product does not mean you were miss sold.

Also you need to consider the fact that life assurance rates have reduced dramatically over the last number of years. An identical new policy with FF may well be cheaper then what you are paying.

Even though First Active is no longer in operation, Ulster Bank is still responsible for servicing their existing customers, contact the 'First Active Insurance Services' office in UB's HQ on Georges Quay should you want to make a formal complaint.

mickoneill30

Even if you're sold a good policy you should shop around every year or two. I did this year and saved about €100 for this years policy. It's not going to make me rich but I prefer it in my pocket.

hwfs.ie

mickoneill30 wrote: »

Even if you're sold a good policy you should shop around every year or two. I did this year and saved about €100 for this years policy. It's not going to make me rich but I prefer it in my pocket.

if you use a broker they should be doing this on your behalf, life cover rates have been very competitve over the last few years and everyone should shop around on a regular basis like the above to see if they can save money.

Rabidlamb

Also, if you've given up smoking since taking out your policy you can expect your new premiums to halve.
It is a legal requirement to have Life Assurance to cover the mortgage in the event of their death but what most people don't realise is that the payout reduces with the mortgage.
If you die 24 years into a 25 year mortgage & there's say €8k left that's all the policy pays out.
Nowadays for the same premium you can get a defined payout that doesn't decay over time.
Always worth paying the small bit extra which allows you continue the policy on completion without the need for a medical.

cookie1977

Rabidlamb wrote: »

Also, if you've given up smoking since taking out your policy you can expect your new premiums to halve.
It is a legal requirement to have Life Assurance to cover the mortgage in the event of their death but what most people don't realise is that the payout reduces with the mortgage.
If you die 24 years into a 25 year mortgage & there's say €8k left that's all the policy pays out.
Nowadays for the same premium you can get a defined payout that doesn't decay over time.
Always worth paying the small bit extra which allows you continue the policy on completion without the need for a medical.

It is not a legal requirement:
http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_protection.html

Payment may not reduce as it depends on your policy too.

snipem

:mad:thanks for all your info Pablo but ive sat down with a pro and he pointed out all the bits and bobs where Friends first added on there extra cash. he checked my new policy too and pointed out just how much more im getting now than i was from Friends first for almost half the ammount, this policy i had with FRIENDS FIRST was supposed to decrease with the mortgage but i was paying 48.70euro in 2001 and when i cancelled last month i was paying 48.70euro. when i phoned and asked about this they said there was nothing they could do about that now and there would be no refund, typical of FRIENDS FIRST, screw you over and then pass the book. if you google you will get great offers from companys who will look after you and FRIENDS FIRST are not one of them. ps FRIENDS FIRST told me i couldnt cancel my policy with them as it was tied in with my mortgage, well i did, and have better cover at half the price.:mad:

phormium

When they told you the amount would decrease along with the mortgage, they meant the sum insured, not the monthly cost.

You were free at the time to shop around, you didn't, unlikely you are comparing like with like at this stage as the new policy you are getting is I presume for the now reduced mortgage and reduced term. Also as already pointed out life cover costs have reduced substantially over the years.

You could have reviewed it every year since, you didn't, UB or FF will do nothing for you at this stage.

snipem

sorry dont mean to be smart but these people at FRIENDS FIRST sat back for the past 11 years taking my hard earned money without so much as a statement or reciept, if thats the way they do business then im better off away from them. i dont know why you would be defending a shower like that unless you are an employee or some way connected. if you are you have a lot to answer for.:mad:

phormium

I'm not an employee or in any way connected with them. I do have insurance policies with them and with other insurers, I find none of them interactive as such, it is up to customer to keep an eye on these things. You bought a product without shopping around, buyer beware. What receipts or statements would you get, it is a monthly direct debit I presume. There are no statements to be got, you got the policy document originally, it's insurance, same as house insurance, you don't get statements of that either. Friends First haven't even looked at your policy since you took it out, why would they, the money just comes in to them each month for the product you purchased. If you took out car or house insurance 10 yrs ago and never looked at it since or shopped around and just kept paying the monthly premium or renewal would you be expecting them to contact you to tell you there was better deals or maybe you should review it. I doubt you would hear anything from any insurance company on any product if you just keep paying.

There is no point being mad at the person who sold you this, that is their job, it is your job to keep an eye on your own finances and review accordingly.

BTW when I took our my FF policy I went to a broker and they were the cheapest for the cover I wanted and they were not loading for a family history that other companies were. I took another policy some years later with them as again they were the cheapest for what I wanted. The last time I wanted to amend this cover again they were not the cheapest so I went with another company. At this stage if I wanted similar life cover no doubt it would be cheaper than these older policies but due to medical history/age etc at this stage it doesn't matter than life cover rates have gone down as I am not in a position to shop around for it so have to keep my old policies.

BuffyBot

snipem wrote: »

sorry dont mean to be smart but these people at FRIENDS FIRST sat back for the past 11 years taking my hard earned money without so much as a statement or reciept, if thats the way they do business then im better off away from them. i dont know why you would be defending a shower like that unless you are an employee or some way connected. if you are you have a lot to answer for.:mad:

Generally, when you come looking for advice it's good not to bite the hand that feeds you, if you can't be polite and appreciate those who are trying to help you, then please don't post at all.

snipem

never got any policy documents, i even had to ring them for my policy to concel, ive wasted enough time and patients talking about this lot. i was just trying to point out to anyone looking for assurance/insurance to shop around and steer well clear of FRIENDS FIRST, K

broker2008

I have a number of life& critical policies with 4 different companies all serving a purpose either to cover a loan or to give my family or I a lump sum. One of these policies is with Friends First - I don't have the policy but I did get a copy at the time. Why? Because the original policy is held by my mortgage lender. 11 years ago when you took out the policy you would have received a copy. I would have researched the market and chosen the best option. Nothing against Friends First at all.