Life Encashment Query

T

tommyg

Guest
Hi,

I have a 'With profits' policy which I started about 13 yrs ago, but due to financial changes I recently let the monthly premiums slip.

I've been advise that the last payment was April 2009 and the surrender value at that point would be just over 6,000.

I can re-instate the policy if I pay up the outstanting premiums since then which would be about 800 euro's.

My question is -

If I paid the outstanding premiums, would the policy encashment rise higher than 7,000 ? I undderstand that all similar policies have increased in value since this time last year, but by how much ?

Thans in advance

tommyg
 
When is the maturity date?

Have a look at the "guaranteed capital sum" on the original policy or recent documentation and add this figure to the "annual bonuses" that have already been declared by the company - usually these become guaranteed. This figure will be the minimum payout at maturity as long as you pay all outstanding premiums and premiums up to maturity. You will then be able to work out whether it is worth paying the back premiums and continuing to pay premiums because of the minimum guaranteed payout at maturity. Policies that are encashed now are quite low and little prospect of much increase. Post the answers to the above and someone here will give you a steer. Otherwise talk to a broker who has experience of with profit policies. Most of the insurance companies have written to customers suggesting a poor outlook for with profit policies and small prospect of terminal or final bonus.
 
If you decide to cash in the policy now , the insurance company will deduct the arrears from your surrender value .

If you decide to pay the arrears now , you will then be offered a new surrender value .

Whether the surrender value will increase to over € 7,000 ? - is totally at the behest of the insurance co.
 
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