Life Change to Life Assurance policy - what should we do?

M

Mrs Vimes

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Hi All,

We have had a life assurance policy with Bank of Ireland Life since 2005 with level cover and what we were told was a fixed premium. We found out recently that they can increase the premium every 5 years which was not explained to us at the time. We are waiting for a Data Access Request before taking it to the FSPO.

Anyway, we are now old and feeble so unlikely to get cover elsewhere but they have suggested we change to a product called "Horizon" which they have just sent me quotes for.

We are currently 47 and 44 and the quotes are for cover of 390,000 and 297,000 respectively.

The quotes are:
37 years - €250
27 years - €142
20 years - €113
17 years - €102

The original policy was to run for 17 more years in line with our mortgage and currently costs €106 but we are now debating whether to go for a longer term.
Spare cash is unfortunately not a thing in this house so need to be wise.
Youngest child has probably 10-12 years more education depending on college but will probably have to finance himself/get a grant to a large extent anyway.

Thanks for any thoughts,
Sybil
 
Take out a fixed term policy. If you are both non smokers, you can get the same cover for 17 years for €92 a month. No reviews, the premium and cover will stay the same for the term of the policy.

Steven
www.bluewaterfp.ie
 
Thanks for replying Steven.

Would there not be medical questions if we were to take out a new policy? We've both had a few things that might lead to cover being declined.

Also forgot to add that Bank of Ireland say that they will refund €9000 which is apparently the current value of the existing policy - makes us wonder why they want to increase the premium in the first place.

Sybil
 
All life cover applications are medically underwritten.

I wouldn't call it a refund, it's your money. They are merely giving it to you.

Their actuarial review of the cost of the cover shows that €9,000 isn't enough to maintain the cover. There are loads of threads on here about how it works. It will only get more expensive as the actuarial chances of you dying increases.

Steven
www.bluewaterfp.ie
 
Thanks Steven.

They have said that the policy underwriting will be based on our health at the time of original application - ie 2005 before we had any medical problems so I'd say we're stuck with them and just need to decide how long to continue the policy.

We could use some of the money returned to finance a higher premium for a longer policy, that might be the best way to go.
 
I loathe these reviewable policies with a passion. See [broken link removed].

Are you sure that the medical issues you've had would preclude you from starting a new policy? Many medical conditions would be acceptable, assuming that there's an optimistic prognosis. A life insurance broker should be able to give you or get you an opinion on your medical conditions without obligation, before you'd complete any application form.
 
Hi Liam,

Thanks for your reply. Your link explains why the salesman ("advisor") was so keen on that type of policy and we were none the wiser at the time.

I'd imagine we would at least cause a loading - one of us has depression which has needed hospitalisation in the past and the other has a bunch of symptoms and a fear of rheumatologists getting in the way of a diagnosis so probably not the type of thing life assurance companies like to see.

We're very much leaning towards chosing the 20 year cover above, essentially getting what we thought we had all along.

Thanks again to you both.

Sybil
 
Another question:

We replied to the "advisor" as above but his is now saying that he wants to hold a phonecall with us to complete a financial review.

Can anyone confirm please whether there are rules, etc requiring this or whether he can actually complete the transfer to a new policy in writing, but would prefer a sales pitch opportunity?

When did I get soooo cynical :rolleyes:

Sybil
 
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