# Lifesaver Plan



## Brookner (31 Oct 2008)

Just wondering if anyone would be able to help - my mam and dad have life cover with irish life in thier Lifesave Plan. The broker they got it through has advised them to cash it in becuase it is due to be reviewed and wont be worth the value it is now in the future. The broker is suggesting cashing in this policy and taken out an alternative plan.He is offering another plan which gives them the same cover for cheaper ,they will save money and secure the fund value from over the years. I hope this makes sense and you can offer some advise as to what they should do for the financial best?please


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## PMU (31 Oct 2008)

You should note that many unbiased observers would regard this type of policy as a scam.  If you do a search you should find a long post I made on this type of policy on AAM some years ago. If there is any encashment value, I think your parents would be better off taking the encashment value and then taking out simple term life insurance. 

  When you say in your post: “and secure the fund value from over the years.”, what exactly does this mean?  Basically, you are usually better off separating investment decisions from insurance decisions.


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## Jimbobp (31 Oct 2008)

You need to find out what life cover he is offering in its place. If he is offering a term policy? If so what term and does it have a convertible option to extend it on at the end of the term wothout giving further medical evidence? The policy they have is more than likely a reviewable whole of life unit linked policy and whilst the encashment value will not get any better the policy cover will be for the rest of their lives rather than a set term (albeit the company will review their premiums every 5 years to make sure the premiums they are paying cover their benefits). Let us know what type of policy is on offer and posters can give their opinion on the benefits.


www.powerinsurances.ie


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## Brookner (31 Oct 2008)

Fund value from over the years is €4, 554. My parents are paying into this since 1984 and the plan was for life cover for €62,000 for both my mum and dad?Does this help?


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## Brookner (31 Oct 2008)

*Re: Lifesaver Plan*
Some of the quotes i got are 
a)lifecover 30,000 over 5 yr term @ 25.70 per month Eagle Star
b)lifecover 30,00 over10yr term @37.02 per month Irish Life
c)lifecover 30,00 over15yr term @45.13 per month Eagle Star

having spoke to Irish life myseld this is a dual policy and if my dad dies they apy out 62,000 and do the same when my mam dies. Looking at what they are paying annually €355 i am beginning to think they are better off remaining in this plan rather than starting a new one? Any thoughts


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## Jimbobp (1 Nov 2008)

If they stay put with the existing policy they are running the risk that the premium could double every 5 years when the policy is reviewed and also losing some or all of their investment value. I've found that the Eagle Star guaranteed whole of life policy is often a good fit for older clients. The policy is a stripped down WOL policy without any investment element, I like the product because it doesn't have a reviewable clause. it may work out dearer in the short term but could be good value over the long term.


www.powerinsurances.ie


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## GSheehy (3 Nov 2008)

Brookner said:


> The broker they got it through has advised them to cash it in becuase it is *due to be reviewed* and wont be worth the value it is now in the future.


 
If it has not been reviewed by the product provider, you should probably wait until you have the full details on costs before you can make an informed decision.


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## mercman (3 Nov 2008)

This is a tricky one, especially when the sales person receive most of the first years premium as commission. With every respect to Insurance sales people, you may be better getting an unbiased and unrelated opinion. Only then should you decide.


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## Church Mouse (19 Feb 2011)

*Run Away from Irish Life*

Probably two years too late for original poster, but from my personal experience with irish Life, and having paid premiums for 20 years on Whole Life Saver policy, and ended with nothing, I would run away from Irish Life as fast as my legs would carry me.


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