*Disclaimer – we do not arrange policies through Laya life insurance
Laya life insurance markets itself as “no-frills” life insurance, but is it a viable alternative to what’s already on the life insurance market?
That sounds great.
You may think:
I don’t like answering medical questions, I’ve had a few health issues in the past, sign me up!
Whoa, there, horsey.
There are medical questions:
Nothing new here.
I know of one website, not a million miles from here, where you can quickly and easily compare life insurance quotes online from 5 insurers, pick the one you want and complete your application form online.
In fairness to Laya, they can issue your policy documents immediately, so if you are in a crazy rush and money isn’t an issue, then they are a good shout.
The other insurers need to note this and speed up their application process for applicants with no health issues.
Okay, this sounds promising…assuming the price of Laya Life Insurance is competitive, to begin with
We’ll look at prices later.
Again, not a bad offer if you already have Laya health cover.
Let’s look at €500k life insurance over 35 years for a 43-year-old and a 45-year-old, non-smokers, no health issues.
Quote Type: Life Insurance
First Person: Non-Smoker, born on 17/12/1977
Second Person: Non-Smoker, born on 07/05/1975
Cover Amount for First Person: €500,000
Cover Amount for Second Person: €500,000
Paying monthly, over 35 years.
Laya:
Broker:
Over a 35 year term, the Laya policy will cost €33,415 more than the New Ireland policy.
THIRTY THREE THOUSAND EUROS MORE!
Let’s take a look:
Quote Type: Mortgage Protection
First Person: Non-Smoker, born on 17/12/1977
Second Person: Non-Smoker, born on 07/05/1975
Cover Amount for First Person: €400,000
Cover Amount for Second Person: €400,000
Paying monthly, over 20 years.
Laya
Broker
Over the 20 year term, you’ll pay over €3000 for the Laya mortgage protection policy.
The smoking question asked is:
Have you smoked any cigarettes or used any other form of tobacco or nicotine products (e.g. nicotine gum, patches and e-cigarettes) in the last 2 years?
So you have to be nicotine-free for 24 months before Laya will give you the cheaper non-smoker rates.
All the other insurers will class you as a non-smoker after just 12 months.
Laya is not for you if you’re less than two years off the smokes.
Laya doesn’t offer a conversion option so your cover will expire at the end of the term.
One of our insurer insurer offers a whole of life benefit that guarantees your policy will pay out eventually, so you at least get something back from the insurer (sometimes you get back more than you paid in)
And did you know we deal with one insurer that allows you to cash in your policy after 15 years and get 70% of your premiums back in cash?
Once the policy has been set up you cannot change your cover
Other insurance policies give a degree of flexibility with free benefits, such as a Guaranteed Insurability Option (GIO). This gives you the option to increase your cover in the future without answering any medical questions.
The market average across the main life insurance providers (Aviva, Irish Life, New Ireland, Royal London and Zurich Life) is around 98%. Basically, once you don’t lie on your application form, the policy is guaranteed to payout.
Our insurers publish their claims statistic every year like this:
A new entrant to the life insurance market is always welcome, as is any new publicity it can bring because, as a nation, we’re woefully under-insured for life insurance.
Last year, the average death claim paid by New Ireland (above) was just €45,868.
Would that even replace the income of you or your partner for one year?
I feel pitching cover “from €10 per month isn’t the best way to protect people”.
Competition is good for everyone. Hopefully, Laya will continue to ruffle a few feathers and bring about some change for the better.
Good luck to them ?
If you’re considering life insurance and need some guidance on the policies available at the other insurers, namely Aviva, Irish Life, Royal London, New Ireland and Zurich Life, we’re here to help.
Please complete this questionnaire, and I’ll be right back over email.
Nick McGowan
lion.ie | making life insurance easier
As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!
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