# Whole life cover. Is it good value? Should I cancel?



## Robo (25 Apr 2007)

Married
Male 42 years old
2 Children, 6 and 8 years of age.
Lifelong protection plan with AIB
Monthly premium Euro 40.6
Payment on death Euro 127,000
Started payments in 1999.
Payments to date 3900
Additional payments up to age 82 = 19488



using this calc

Future value of my payments over 47 years at 5% growth =87795



I have been advised by an “independent” financial adviser to cancel this policy and take out term insurance for 400,000 for a 20 year term. I agree that I need to take out term insurance to increase my cover. But to me, the pay out of 127000 is a good return on investment for my contributions. Is the logic of my maths correct. I am using 82 as the max age I am likely to reach. Presuming I die before my wife, I see the payout as a top up to her pension.

All comments welcome.


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## PM1234 (25 Apr 2007)

The type of life cover required depends on your needs. 

Whole of Life cover doesn't necessarily mean that your premiums will stay the same. It is usual for life assurance companies to base your premium over a certain period e.g. 20 years to calculate your premium which is then reviewed at a later time.  They do this as to calculate a premium over 99 years would result in a very high premium. 

Term cover is exactly what it says. The life cover is for a specific term and ceases when the policy expires and will for e.g. cover the mortgage if the policyholder dies within the term and the amount left can be paid to the family of the deceased. 

For somebody with dependents, life cover for both parents is obviously a huge advantage and many would say life cover for the main earner is a necessity. 

It is a decision based on personal and financial circumstances. It might be a good time to review all your cover at this time. Remember to take into account your employers death in benefit scheme etc


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## NHG (26 Apr 2007)

We have just taken out Pension Guaranteed Term Protection and its tax deductable like the our pension just wanted to have something for the family which is'nt assigned to anything else. 

In the event of a death it pays out 4 times the current salary at time of death and basically pays the balance out like the pension, monthly which to me is better than a lump sum being blown in one go.  Its up to age 75 and it can be converted to a longer life span if required in later years (at a larger cost naturally!)


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## RS2K (26 Apr 2007)

Robo said:


> Married
> Male 42 years old
> 2 Children, 6 and 8 years of age.
> Lifelong protection plan with AIB
> ...



Cover and premiums are reviewable so you calculations won't work. What happens if they double the cost after 20 years? Term cover would be uneconomic then and you might no longer be in good health?


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## Robo (26 Apr 2007)

Thanks for the feedback.

The premiums are constant. It is an AIB Life Long Protection Plan.


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## RS2K (26 Apr 2007)

Robo said:


> Thanks for the feedback.
> 
> The premiums are constant. It is an AIB Life Long Protection Plan.



They are constant until review. AIB don't write traditional whole life plans.

Reviews are usually after 1 st 10 years, and 5 yearly after that.


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## Robo (26 Apr 2007)

It is a Lifelong Protection Plan from Ark Life. According to the policy document
"Premiums will remain level throughout the continunance of your plan"


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## RS2K (26 Apr 2007)

Robo said:


> It is a Lifelong Protection Plan from Ark Life. According to the policy document
> "Premiums will remain level throughout the continunance of your plan"



I may have erred therefore


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## upport (27 Apr 2007)

Robo said:


> It is a Lifelong Protection Plan from Ark Life. According to the policy document
> "Premiums will remain level throughout the continunance of your plan"


This possibly means that the premium and therefore the life cover remain level i.e. the plan is not indexed linked.It does not necessarly mean that the premium is not reviewable.Read the t/c in relation to premium review to be sure.


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## Liamog123 (9 May 2007)

I have a policy of LIFE ASSURED with FRIENDS FIRST. I am paying the monthly premium of €24-76 for some years.  I cannot find some of the details.
I will be 70 years of age in June of this year and the monthly premiums are now gone up to €78-16 per month.
I am shocked at this and I rang up and spoke to a girl and thats the way it is.  I was offered the choice of continuing with the lower premium and reducing the pay out amount.
Is this type of increase normal? 200%?
Liamog123


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