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Life Assurance

  • 30-07-2018 8:31am
    #1
    cantwbr1
    Registered Users, Registered Users 2 Posts: 305 ✭✭


    Hi All,
    When we took out our mortgage in 1998 we got life assurance. We got a letter today telling that the policy terminates at the end of August (with the mortgage). To renew for 10 years the monthly premium will be €581 or €906 for 23 years (a ~15 or 25 fold increase in the premium).

    To me it looks like they are treating the renewal as a brand new policy rather than a continuation of an existing policy and pricing it to reflect this.

    Do I have any options here?


Comments

  • #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,856 Mod ✭✭✭✭Henry Ford III


    Yes it's a conversion option (no health evidence required) and it is priced on your ages now.

    Assuming you are in good health you have all sorts of options depending on your requirements.

    As always get proper advise.


  • #3
    JTMan
    Registered Users, Registered Users 2 Posts: 5,558 ✭✭✭JTMan


    cantwbr1 wrote: »
    Hi All,
    When we took out our mortgage in 1998 we got life assurance. We got a letter today telling that the policy terminates at the end of August (with the mortgage). To renew for 10 years the monthly premium will be €581 or €906 for 23 years (a ~15 or 25 fold increase in the premium).

    To me it looks like they are treating the renewal as a brand new policy rather than a continuation of an existing policy and pricing it to reflect this.

    Do I have any options here?

    Do you need life insurance or mortgage protection?

    For life insurance, that figure is extortionate. Have you priced around? I went with Royal London via Labrokers.ie when I shopped around. I pay around 20 EUR per month.


  • #4
    Goyourownway
    Registered Users, Registered Users 2 Posts: 2 ✭Goyourownway


    This is a conversion option. It was probably sold to you on the basis that it looked cheap in the short run as the term was short however to extend to a suitable term would cost a lot more. I work as an independent financial advisor and always recommend that clients effect level cover until a suitable age from the outset. I would shop around and look at level cover before taking up the conversion option.


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