What type of insurance is this? 😳

DollyB

Hi a family member recently mentioned they had a life insurance that they have paid into for the last 20 odd years and at 25 years of payment they can choose to opt out and receive €100,000. What type of insurance is this?

P. Breathnach

A policy that pays out a given sum "on the expiration of X years or on prior death" is known as Term Life Assurance.

DollyB

Thank you

EGavigan

DollyB wrote: »

Hi a family member recently mentioned they had a life insurance that they have paid into for the last 20 odd years and at 25 years of payment they can choose to opt out and receive €100,000. What type of insurance is this?

I'd say this is actually a Whole of Life policy. Anyone who has this and doesn't know what it is really should have it reviewed as it can seem a lot better than it is. Many people who took them out didn't know what they were signing up to. One company in particular seems to have been flogging these to loads of people without explaining them properly. What life company is it with?

actuar90

P. Breathnach wrote: »

A policy that pays out a given sum "on the expiration of X years or on prior death" is known as Term Life Assurance.

It's endowment assurance. Essentially a combined investment and life assurance policy.

http://en.m.wikipedia.org/wiki/Endowment_policy

P. Breathnach

actuar90 wrote: »

It's endowment assurance. Essentially a combined investment and life assurance policy.

http://en.m.wikipedia.org/wiki/Endowment_policy

Correct, and I acknowledge my mental slip.