It’s worth looking for a discount on an old life policy

[Dr Strangelove]

Wife and I have a joint life policy linked to a mortgage taken out about ten years ago.

To be honest it had just come out by direct debit every month since and it struck me recently that there might be better value.

I rang the provider up last week and spoofed an offer from a competitor and my own provider offered me 10% discount there and then. Confirmation came by post today.

It’s probably worth a phone call to see if you can achieve the same.

 

[Steven Barrett]

I've never come across this (I'm not suggesting it didn't happen).

Life policies have guaranteed cover, price and term and are very inflexible once they are in place. Especially when a policy is 10 years old. Even from a systems point of view, I am surprised they were able to do it, never mind from a profitability one.

 

[Dr Strangelove]

I was very surprised as well.

My guess is that it’s due to the big rise in interest rates since 2022.