Life Insurance Query

meggiedoo

:mad: and
I started a NFMC Managed Growth Life Fund in 1989. The starting premium was £10.00 and increased to £24.14. during the following years. The sum assured rose and fell from around £30,000 to £27,000.
I have now received Review stating that the sum assured is reduced to £4,810 and even if I wanted to keep it at this amount my premium would go up £25.06. They offered to give life assurance for £22,341.00 without the need to provide medical evidence, but that there would be an additional fee for this.
I realise that they invested some of the money, which is now lost, but it does seem rather a low amount – not enough to even pay for funeral costs.
I did enquire what the cash-in payment would be – and was informed it would be a paltry £82.70.
Does anyway know if the company can do this, after all the monies paid in over the last 20 years?

dunstonh

Does anyway know if the company can do this, after all the monies paid in over the last 20 years?

Yes they can. It's within the rules of the scheme

The problem is that these old fashioned plans price your life cover each year and you are now 20 years old and much more expensive to insure than when you started. The idea of the investment element was that it would grow by enough to pay for those increases. That hasnt happened as investment returns (not including inflation) have fallen and havent met the original expectation.

Nowadays, you tend to find most life plans have no investment element. You could look compare what you have against one of these newer plans.

Times change, things move on and you have a product from a different era that doesnt cut it by todays standards.