Do people eventually cancel life insurance and if yes, when?

Comer1

I'm the wrong side of 55 and have lifestyle protection plan that I took out when I got married. It has life and hospital cover. When I took it out it covered my life for ar€250k. I Opted to reduce the cover so as not to increase the payments a few years ago. Its not paying €180k on my death. Got another letter today telling me my cover will now only be for €120k for the same payments. My children are just finished in college and my mortgage is well paid. I have no debt.

Obviously as I get older the policy will continue to pay less and less in the eventof my death. I assume there is a point where its not worth keeping the policy. At €320 a month for 25 years, I've obviously spent a fortune on it. Is it time to cut it lose and accept that I'm not going to die young.

Geuze

I bought term life cover after marriage, so there is a predefined term, so I won't cancel the cover, it will come to an end at the end of the term.

Henry Ford III

You have a whole life policy there OP which is bombing out at review time.

If I were you I'd get your policy and options looked at professionally.

Comer1

https://www.boards.ie/discussion/comment/120242135#Comment_120242135

Thanks, I am in the process of meeting the financial advisor from my insurance provider as a first step. As I'm not confident that he is not be impartial and may have the company's interests as a priority, I'd like to know a bit more before the meeting.

I see two benefits from the life insurance part of this policy, one, if I die young my wife and dependant children are taken of, two, if I keep it to old age, it's a way of leaving money to my children. What if a person's children are no longer dependant. What if a person has already made provision for their children after their death in old age?

I'm finding it difficult to justify continuing paying this policy when the payout is going to just get lower and lower as I get older. I always just assumed that once I had no more dependants, I would just cancel the policy and have the money myself. I just want to ensure this is not a really stupid thing to do. Do most people with whole life politics keep paying them into old age and death, or do they do what I'm considering and stop paying when the benefit becomes so low.

Sunrise_Sunset

My parents had this type of policy. Every year their premiums increased and every year the payout if one of them died decreased. My Dad died a few months ago, the payout was enough to pay for the funeral with 5k left. Not a lot.

Jim_Hodge

When we had the mortgage cleared and the kids educated we cancelled the life insurance policy. But we were fortunate to have very generous pensions with good lump sums and death in service cover. We're now retired and, to be honest, don't need the payout from a life policy. We had a policy when we needed it and ditched it when we no longer had that need,

Comer1

https://www.boards.ie/discussion/comment/120246233#Comment_120246233

That's been my thinking too

Astral Nav

A lot of them are actually programmed to have 'reviews' which are increases to drive you out once you are north of 45. Consider them carefully and perhaps take professional advice. It is possible to be over insured.

daheff

I presume you mean 320e a year not a month? If it's a month then stop it now!!

Personally once mortgage is paid off, kids are finished education and there's a reasonable pension fund around I'll be stopping mine. Not worth the cost after that.

fits

320 a month is mad. You’d be better putting it into a bank.

Comer1

https://www.boards.ie/discussion/comment/120246349#Comment_120246349

It's €320 a month. It has serious illness and hospital cover also. Until recently, I always assumed that was the normal cost of insurance. About ten years ago, an acquaintance wanted me to take insurance from him. When he saw my policy, he said they couldn't match the kind of cover I had so I was left thinking my premium and cover was normal.

Recently, I've noticed adds on TV selling life insurance for a fraction of what I've been paying and started wondering why my premium has been so high since taking it out at 30 years of age.

Geuze

320 per month is absolutely insane.

Get a quote here: https://www.labrokers.ie/

Geuze

120k life cover

Born 01.01.1968

10 year term

371 per year

Jim_Hodge

https://www.boards.ie/discussion/comment/120246873#Comment_120246873

It is crazy but it had serious illness and hospital cover, so not your ten a penny life policy. The guts of €4000 a year would buy decent health insurance.

Henry Ford III

https://www.boards.ie/discussion/comment/120245333#Comment_120245333

Ask the advisor about their impartiality or lack thereof

If you are happy get someone else.

Henry Ford III

https://www.boards.ie/discussion/comment/120246267#Comment_120246267

Reviews are after 10 years, then every 5 years, and annually from age 70.

That's standard.

Comer1

Apparently it's the independent illness cover that's making it so expensive. As I have VHI and a salary protection policy, I believe it's a waste. I plan to cancel this after meeting the financial advisor (may as well talk to him anyway) and take out a life cover only policy for the next ten years at approximately €50 per month, which will take me up to retirement.

Thank you all so much for your contributions, they were invaluable👍