Aviva have increased their premiums what now?

spacemagnet

Hi guys,

My mother is 61 and has been paying into a life insurance policy with Nat West since she was 40 odd. They have just informed her that Aviva are taking over and will up her premiums by no specified amount in 2026. They have offered to "make it easier" by suggesting she pays slightly more now (increasing from £33 to £52 per month) between now and then. So her dilemma is should she pay £52 per month now assuming she will live till 2026 and hope she can afford the increase in 2026, whatever it will be or wait and see just in case she pops her cloggs beforehand.

Does anybody know how easy it is, if at all, to change to another company and take the original agreement with her (or take up one similar) without losing money?

The other issue is since her 40's, like most people, she's not as healthy as she was then and so this may increase her premiums with a new company or maybe just the fact that she's 20 years older.

Any ideas?

Cheers
Jo

lisyloo

She appear to have some sort of savings/investment with this insurance.
Can you describe what it is?
Is it an endowment?
Is it woth-profits or unitised?

spacemagnet

Hi Lisyloo,

It's a straight forward payment of £30,000 on death. I'm not sure what that is classed as and we live miles apart so I can't check her paperwork.

Jo

lisyloo

Does anybody know how easy it is, if at all, to change to another company and take the original agreement with her (or take up one similar) without losing money?

If it's simply a life assurance then there is no money to lose.
She can cancel it at any time and start a new one.
Of course if she starts one at 76 then it will be expensive.

Does she need to insure her life at 76? Will she have a mortgage?
What is the purpose of the insurance.

Most people take policies when they are younger to either pay off debts (like a mortgage) or to help a spouse where there are children to support. Usually neither of these would apply at 76, so what's the reason for having it the policy?

The other issue is since her 40's, like most people, she's not as healthy as she was then and so this may increase her premiums with a new company or maybe just the fact that she's 20 years older.

The risk of death increases with age. That's a fact, so life insurance will probably go up.

In her position I'd probably pay the cheaper premiums for 15 years, but I don't really understand what her need for the policy is at that age.
If it's for funeral plans then a savings accounts might serve her better.

spacemagnet

It's purely so I get a lump sum on her death, nothing else.

Jo

dunstonh

It's purely so I get a lump sum on her death, nothing else.

Normally pure whole of life plans have guaranteed premiums. It was the investment linked ones that are different.

Is it natwest that have written to her saying Aviva will be taking over or is it a Natwest sales rep trying to get her to switch to Aviva?

Either way, if she still wants life assurance, then get her to see a local IFA. They can beat Natwest in price as well as making sure she is getting real advice and not sales pressure.

ExpertAdvice

Hi Spacemagnet,

You mentioned that she is not as healthy as se used to be. Can you provide a but more details about her medical conditions? I'm just trying to analyse as to how difficult or expensive would it be to change the insurer.

Cheers

kingstreet

AFAIK, NatWest has never been able to issue long-term business. I don't think there was ever a NatWest Life and going back in the dim and distant past they had a tie with L&G?

I'm wondering if this was really a Norwich Union policy, which is now Aviva, and the N and W have somehow made it into NatWest?

We really need to know the policy type, issuer and other terms before anyone can give anything like meaningful assistance.