Life Exiting Acorn life Whole of Life policy

F

Fedupwtbs

Registered User
Messages
58
Long story short - took out a policy over 6 years ago via a broker with Acorn Life.

Finally seen the light today and I am in the process of cancelling this as I realise this type of policy does not have my best interest at heart.

Just wondering after paying 6 years of premiums for Life Cover and Critical Illness Cover can I get anything back after I cancel.

To give people an idea:

Life Cover for 320k
Illness Cover for 130k
Monthly premium at 81 euros.started out at 50.
29 years left on mortgage

Tbh it is probably good cover as of today as we are young and only 6 years Ito the policy but can see this increasing and increasing as the years go by.
Have decided to go with a term life which I understand will involve the same monthly premium for the termof the mortgage.I also did not realise that besides the inflation rise which is fine that I can expect a review after 10 years which will likely drive up the premium.

Any thoughts appreciated.understand Whole of Life policies are no longer offered.

Mods, feel free to adjust as necessary.
 
A few different issues here:

1> You would have dealt with a tied agent of Acorn and not a broker, who would have the choice of a number of different providers.
2> I wouldn't cancel the policy yet, in case you run into any underwriting problems with any new company.
3> This policy was probably set up on a unit linked basis, so they're maybe an encashment value.
4> Was this policy set up to cover a mortgage? If so, you may be better off taking out a basic mortgage protection policy guaranteed for the term and a separate policy for your own needs.
5> The policy will review after 10 years and usually every 5 thereafter and possibly shorter again as you get older. So even though it is a WOL policy in reality it will probably become too expensive for you to gain benefit from (But this will depend on the review premium etc.).
6> There are guaranteed (i.e will not review) WOL policies available

Hope this helps
 
Thank you JimBob

I have cancelled the direct debit but not the policy as of yet.

I am thinking about taking out 2 seperate policies. One for life cover to cover the mortgage and a seperate policy for Life Assurance and Serious Illness Cover.

Will go for a fixed cost policy.

Who are the most preferred providers at present and does it make any difference doing this by myself or going through a broker.
 
I think you are correct in going for two separate policies, as the mortgage protection policy can finish when your mortgage is paid and the separate policy can be more flexible to adapt to your life as you grow older. There are a number of providers on the market so who best suits you would depend on your needs. It shouldn't make a difference to the premium whether you go through a broker or not.
 
Fedupwtbs,
Hi, am too with Acorn with a similar policy. Just wondering did you cancel with them, did you get anything back if you did? Am looking around for a life assurance/critical illness policy whose premium doesn't increase over the years or not by much. Did you have any luck finding a policy?
 
Raglan,

all the providers offer what you're looking for, sit down with a local broker who can talk you through your options
 
I did cancel but as of yet have not recieved anything. Not even sure if I will or if Ian entitled too.

Took out 2 separate policies. Mortgage protection with Zurich and a life assurance /crit ill cover with new ireland.

The monthly rates were pretty much the same but there are no review so I know what I will pay for the next 29 years.
 
Hi Fedupwtbs,
Did you get any feedback from Acorn about cancelling you policy, were you able to get anything back?
 
I took out a life insurance policy with Acorn (formerly NZI Life Ireland Ltd) in 1994 starting with a premium of £50 a month indexed to €165 a month in 2011. Due to financial constraints I had to stop paying in 2011. I had paid just short of €20k over the period. I have now asked Acorn what is the encashment value of the policy and the rep tells me there is nothing there. is this right?
 
I know someone who paid into a whole of life Life Insurance Policy with Bank Of Ireland tied to a mortgage. Death Cover is twice the original mortgage and life cover is about 10% to 20% greater than original mortgage. It is possibly a mis-sold policy from my understanding but they say it is virtually impossible to get a refund in such circumstances.

However there is a cash value built up of around €1500 after a decade approximately. Not sure if it is necessary to cancel the policy to draw down the cash value
 

Johnjoe, just going back to your post, you are entitled to the paperwork as to how they arrived at a nil value, Many of these assurance companies have ways of covering up charges. But ask and you will receive.
 
mercman said:
Johnjoe, just going back to your post, you are entitled to the paperwork as to how they arrived at a nil value, Many of these assurance companies have ways of covering up charges. But ask and you will receive.
Click to expand...

Compliance requirements in 1994 were non existence so you'd be lucky if there was any paperwork.

The indexation on that policy is 5% per annum. It goes to show you the power of compounding over a long period of time. Of course, the cover would also have gone up over time and if Johnjoe died, there would have been a comparable payout to his loved ones.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
You must log in or register to reply here.
Menu
Log in
Register