buying back life cover policy-pro's and cons

crumbling

Heard from my or this week! First time since my interview in September. Do I want my life cover to lapse by stopping payment, keep payments going and if I die it goes to them or buy it back from the or for 50 quid.

My gut instinct tells me to buy it back as due to health problems, I doubt that starting a new policy would be affordable.

If I don't buy it back and I die, as the policy is purely to provide for my child until they're 18, would any benefit materialise for my child?

I explained to the or that I simply do not have the money right now as I'm trying to save to tax my car in Jan so that I'm not stranded in my village where buses are seldom and they were fine that payment could wait til Jan.

So, would it be best for me to buy my policy back or not?

skylight

Best thing to do is to go and get some quotes from other places for your circumstances now. It will really depend on the differences in amounts. If the amount is low then get new insurance after your discharge. If its a lot higher then you will have to find the money to purchase the BI in your insurance.

I wish I had kept mine! I was going to but coudn't find the money. I now have less cover for my money.

Is your insurance a life term policy? What happens when your child is 18 then? Basically if you die, the OR will get the money and deduct what you owe and the large fees then hand over the remainder to your estate which will then distribute whats left according to your will (or intestate laws if you die without a will).

crumbling

thank you for your reply, very helpful as I'd not thought about other quotes.

I'm really not sure what happens when my child turns 18 - I presume the policy will cease. Really should check that out!