Life Increased premiums for over 60's

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BrianS

Guest
Have joint whole life cover. Since reaching 60, premiums have been increased by 30% per annum. This is also "compound interest" (70% over 2 years).
Insurance Co. maintains it is their right, under the original terms to "review" the policy, but refuse to divulge the criteria for increases. These increases are not on medical grounds (haven't been asked to submit to medical exam).
Am inclined to believe this "Ageism"
Anyone else any experience of this?

thanks
 
Looks like you took out a reviewable whole of life policy. These policies can 'review' every year once over 60 which can prove v expensive. There are alternatives out there including guaranteed whole of life cover & over 50's life cover.


www.powerinsurances.ie
 
It sounds like you have a reviewable whole of life policy. There are numerous posts on these forums about how you effectively write a blank cheque to insurance companies who offer these products when it comes to review especially after age 60.

The reason for the increase is not ageism but is due to age. Life assurance is more expensive the older you are, simply because there is more chance of a claim.

If you are in good health, it may be worth seeing if a guaranteed term assurance product would work out cheaper for you as long term you dont know what you could end up paying to preserve your benefits under this plan.



www.CheaperLifeAssurance.ie
 
I found, as I got older, that any need I had for life insurance diminished, and have not had a policy for many years. OP, consider your situation, and ask yourself if you need to continue the policy.
 
Padraigb said:
I found, as I got older, that any need I had for life insurance diminished, and have not had a policy for many years. OP, consider your situation, and ask yourself if you need to continue the policy.
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This is quite true, a combination of mortgage possibly being paid off and kids grown up can reduce your need for life assurance. Certainly worth considering. You may find that all you want is a policy to cover funeral expenses or if you have sufficent savings, maybe you dont need one at all.



www.CheaperLifeAssurance.ie
 
Thanks for that
I do understand that cost of insurance gets higher when older. My main objection is the way they go about it. They make it sound like index linking, until you query the cost, and then realise its your age. They certainly don't advertise that fact when you take out the policy. I do have a dependent child at college and have been forced to maintain this policy as part of a divorce settlement. Alas
 
If you didn't understand that when you reached a certain age the policy would be subject to a review resulting in increased premiums or decreased benefits then you may have been mis-sold and have a case. If this is the case then you should write a letter of complaint to the person who sold you the policy and take it from there. Forget these people trying to get you to switch to other policies that's certainly not the point.
 
Irish Life Massive increase in premium as we reach 65 !

I received a letter from Irish Life informing me that my Life Saver assurance premium,taken out 20 years ago will increase from €119 to €255 per month ! I am just reaching my 65th birthday and just retired. The premium has always increased by a small amount every year, but never has there been a big increase like this. I wrote to them and they sent me back a lot of documentation, including a copy of the original policy, so I assume they are legally entitled to do this. It is so obvious though that at a time when my income is reduced due to retirement that to increase the premium by so much is morally reprehensible and came as a complete shock.
I cannot stop paying after 20 years as there is no value on surrender. If this had been genuinely explained to me when signing up I would never have purchased it. The broker is deceased and the new agent assigned to my policy has gone to ground and is not replying to any correspondence. Any advice would be appreciated
 
It looks like you signed up to a dreaded reviewable whole of life policy. Most don't understand these policies when signing up to them and don't realise they will review after 10 years (and possibly every year over the age of 65). You should look for an alternative if possible, as there is a strong possibility that this policy will continue to increase in the coming years or the cover will reduce at every review until there is little or no cover left.

www.powerinsurances.ie
 
TerryC said:
I cannot stop paying after 20 years as there is no value on surrender. If this had been genuinely explained to me when signing up I would never have purchased it. The broker is deceased and the new agent assigned to my policy has gone to ground and is not replying to any correspondence. Any advice would be appreciated
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I'm pretty sure that if you're in good health you could replace this policy with a much cheaper one. The mortality charges on policies that are 20 years old were never adjusted for improved life expectancy.

The time to act is when you start to get large annual increases - these will only get worse as you get older. Newer whole of life policies with better rates and guaranteed level premiums are a far better option if you are not in bad health.
 
I would query why anybody at age 65 or over would pay for life insurance. Presumably at that stage, certain assets have been obtained which can be offset against liabilities should the need arise. The person paying for the life insurance is certainly not going to benefit personally by any payout.
 
Eithneangela said:
I would query why anybody at age 65 or over would pay for life insurance. Presumably at that stage, certain assets have been obtained which can be offset against liabilities should the need arise. The person paying for the life insurance is certainly not going to benefit personally by any payout.
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You presume a lot to think everyone over 65 has liquid assets to pay for their funeral expenses etc. Even if they have their home paid off, their is no guarantee of selling it in the current environment and even if you could it could take 12 months to sell. Their are also other factors like inheritance tax, surviving partners/dependents to look at. Why would the OP tie up cash they could be enjoying when they could pay a life policy and remove the burden from themselves?


www.powerinsurances.ie
 
Jimbobp - I notice in the last 3 posts on this topic, you have given a link to a specific insurance company - any reason why?
 
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