Life policy started 2014, term is 25 years, covers one spouse. It is a convertible policy.
The couple have MPP, and the other spouse has 4x life cover through work pension.
The policy is indexed as follows:
the cover rises by 5% pa
the premium rises by 8% pa
Year 10 just started, the cover is 146k, premium is 200.
I ran some numbers through a spreadsheet:
(1) If they continue with the policy, from year 10-25 they will pay 6,061 premium.
The cover will rise from 146k today to 303.5k in the final year.
(2) 150k flat cover over 15 years from today cost 139pa / 2224 total
(3) 200k flat cover for 15 years from today costs 174 pa / 2786 total
It seems to make sense to cancel this policy and start a new one?
The couple have MPP, and the other spouse has 4x life cover through work pension.
The policy is indexed as follows:
the cover rises by 5% pa
the premium rises by 8% pa
Year 10 just started, the cover is 146k, premium is 200.
I ran some numbers through a spreadsheet:
(1) If they continue with the policy, from year 10-25 they will pay 6,061 premium.
The cover will rise from 146k today to 303.5k in the final year.
(2) 150k flat cover over 15 years from today cost 139pa / 2224 total
(3) 200k flat cover for 15 years from today costs 174 pa / 2786 total
It seems to make sense to cancel this policy and start a new one?