Life Assurance: Whole of Life Policy...help?

russppt

Hi

Just wondered if anyone can give me some clairity on my situation.

I recently gave my self a 'financial enema' changing my mortgage deal and now examining my policies.
10 years ago I took out a Whole of Life Policy with Zurich. Each year I get a letter telling me the premium is going up and the sum assured for is growing. In the event of diagnosis/undergoing illness/operation it pays out. Knievely I thought this cover would also would cover my whole mortgage plus the sum assured, but this is not the case.

Whilst the total contributions have been £6634, there is a cash value of £1860 upon cancelling.

I intend to cancel this policy and take out a term insurance for the whole of my mortgage as I am currently not covered which equates to what I am paying now on this whole of life policy.

Can anyone shed some light on my situation or would value your opinion as I see no real benifit to the above policy and have also read on other forum posts it is pretty much a waste of time.

Thanks in advance for your views.

Russell

dunstonh

That style of policy was obsolete about 15 years ago. So, unless there is some contractual reason or benefit to stay put, then modern alternatives are usually better (reasons to stay put can apply on CI plans in particular where older plans often have better coverage or less restrictions - but not always as there used to be budget and comprehensive versions).