Life Assurance Policy - Is it Worthless? Can I Cancel it?

Pity Thanks

Back in May 2007 I took out a life assurance policy with a bank to the value of €20k at the time, with a cover period of 20 years,
my current payments are around €44/m and the policy has a claim value of €24k

On the most recent review it says the gross and net values are €0, so it seems that it is worthless


I'm recently unemployed, so I really need to get rid of the policy - But have I signed up to something for the next 20 years? Can I actually cancel the contract?

I'll be heading into the bank on Friday as I've to lodge my first ever Social Welfare Cheque so I'll enquire in person then


I'm covered for the likes of Death, Critical Illness, Broken Bones and Absence from work,
but I reckon Absence from Work might be for illness reasons only and not actual unemployment - I've been re-reading the policy, and it's not very clear


In hindsight, I totally regret not putting that money into the Credit Union, or as I was tempted to back in 2007; Gold from a company who had a $1000 minimum money back guarantee

broker2008

Is the 24k death cover or serious illness cover ?

If there is no cash in value, I would think that you can cancel policy without any further cover and no further committment to pay premiums.

coylemj

Pity Thanks wrote: »

I'm covered for the likes of Death, Critical Illness, Broken Bones and Absence from work,
but I reckon Absence from Work might be for illness reasons only and not actual unemployment - I've been re-reading the policy, and it's not very clear

If you're not actually in paid employment then you typically cannot claim any benefit under critical illness cover so apart from the death benefit it sounds to me like you have very limited scope for claiming anything off the policy. If you have no dependants I'd just stop paying the premiums.

Pablo Sanchez

coylemj wrote: »

If you're not actually in paid employment then you typically cannot claim any benefit under critical illness cover so apart from the death benefit it sounds to me like you have very limited scope for claiming anything off the policy. If you have no dependants I'd just stop paying the premiums.

I think your talking about Income Protection, not Critcal Illness. CI is not linked to ones employment status.

coylemj

Pablo Sanchez wrote: »

I think your talking about Income Protection, not Critcal Illness.

You're correct.

Pablo Sanchez wrote: »

CI is not linked to ones employment status.

Wouldn't bet on it, CI and income protection policies are notorious for their exclusions, that's why they've been getting such bad press of late. Check the policy.

chris85

coylemj wrote: »

Wouldn't bet on it, CI and income protection policies are notorious for their exclusions, that's why they've been getting such bad press of late. Check the policy.

They are generally getting bad press for the hoops they are making people jump through. Illness and critical cover would be irregardless of employment status.

Another thing in press is people being sold payment protection insurance when they are self employed. This is not good as only cover PAYE workers generally.