Life Encashment value extremely low

B

busysaver

Guest
We took out a Life Insurance Policy from Shield Life back in 1988 on both our lives 50,000 on each life and have continued paying more and more each year.
Probably wont be able to afford increases in future years !
The illustrative values at inception for encashment at 65 - approx 23,000 but was transferred to Zurich a few years ago and they are now saying 700 !!!
Is there any point bringing this to Financial Ombudsman or should we look for a quote for Guaranteed Whole of Life policy with another Company as we are fortunate to be in good health at present ?
 
We took out a Life Insurance Policy from Shield Life back in 1988 on both our lives 50,000 on each life and have continued paying more and more each year.
Probably wont be able to afford increases in future years !
The illustrative values at inception for encashment at 65 - approx 23,000 but was transferred to Zurich a few years ago and they are now saying 700 !!!
Is there any point bringing this to Financial Ombudsman or should we look for a quote for Guaranteed Whole of Life policy with another Company as we are fortunate to be in good health at present ?

There are no grounds whatsoever for bringing it to the Financial Ombudsman. You had a unit linked policy that is prone to investment market fluctuations. Remember, the illustration that you were given assumed a straight line increase of say 6% per annum. In reality, you had the dot com and credit crunch crashes, which would have wiped your savings, followed by periods of incredible growth.

In most cases, Zurich Life are the cheapest for whole of life cover. Before you take it out, can I ask what you need whole of life cover for? Life cover typically covers loss of income.


Steven
www.bluewaterfp.ie
 
Thanks Stephen its as expected - main reason is to cover funeral costs and balance to help other half survive on state pension !
 
No problem.

You are better off going for a guaranteed premium, at least that way, you can plan for the cost.

With the other one, the cost is assessed every 5 years (usually). They then look at the likelihood of you dying and them paying out. Obviously, that likelihood increases as you get older so the premium is getting bigger. When you are younger, the chances of you dying are much lower, so the premiums are really cheap.

Cover of €50,000 for two 65 year old non smokers will cost €210 per month.


Steven
www.bluewaterfp.ie
 
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