Skandia Life Insurance Help Plz!!!

Pat100_2

Hi

My dad got a life insurance policy 21 years ago with Skandia. They have recently sent him a renewal letter saying that if he wants to keep the same lvl of cover the premium now needs to tripple in price. Otherwise the insurance value decreases basically 3 fold.
He spoke to them about cancelling the insurance altogether as the repayments would now be too expensive and they sent a letter saying that if he wants to surrender the policy they will pay a few hundred pounds for it. When he has paid £1000s over the last 21 years.
Can anyone who knows about these things offer any advice please,

ThankYou

dunstonh

Can anyone who knows about these things offer any advice please,

Any IFA can offer advice and as its a regulated investment product under FSA guidelines then that is the only place you can get advice. Anything else is discussion and comment only.

The plan in question will be a whole of life assurance. It is not for savings/investment. There is an investment element that was originally designed to help pay for future premium increases but these plans were designed back in the old boom/bust, high inflation days and havent done what was needed in the steady growth years.

The product is doing what it is meant to do. i.e. if he dies, it will pay out a lump sum benefit. If he doesnt then it wont (albeit the small investment element pot that exists).