Running out of time Mis sold endowment

opinions4u

The policy contains life insurance, critical illness etc which is not needed as I don't have any debt and no dependents

Why would you not have a need for critical illness cover?

Cashcow_2

I have other savings plans and whilst I see some merit in critical illness cover, I don't personally see the need for it as I don't have any dependents or debts. Unless there are any other benefits I'm unaware of?

dunstonh

The bank advised me that I cannot remove these elements of the policy and thereby lower the monthly premiums - is this right?

That is correct.

Also, would an endowment policy have an element of PPI and be valid for a claim if mis sold?

What makes you think that having PPI would make it valid for mis-sale? As it happens, it doesnt.

opinions4u

Cashcow wrote: »

I have other savings plans and whilst I see some merit in critical illness cover, I don't personally see the need for it as I don't have any dependents or debts. Unless there are any other benefits I'm unaware of?

I don't really understand why having dependents matters.

A critical illness can wipe out savings very quickly. So a single person with no dependents insuring against such an outcome makes sense.

If it's a with profits policy you could make it "paid up" which would mean the cover reduces and the premium ceases but the money remains invested.

Alternatively surrender it if it doesn't meet your present objectives - assuming you are prepared to accept any loss of bonuses and possible mortgage guarantee that this could impact.

holly_hobby

CI cover on diagnosis, would pay you a lump sum and effectively make provision for your daily living costs/repayment of os debts etc, which will be invaluable when/if you became unable to work due to the illness ..

It must also be noted that not all critical illnesses are short term or indeed lead to a premature death, individuals can and do respond to treatment/go into remission, returning to "normal" life afterwards (as I have witnessed myself) - so having such a policy to "carry you" through would certainly be beneficial, especially if you use the proceeds to repay your mortgage or debts. Of course the individual, for many reasons, may not be able to return to their previous role or income level, so the policy having vested and used to repay liabilities would again be a valuable tool in reducing your outgoings and relieving some monetarty pressures you may be under.

Single with no dependants, yes you could argue life assurance isn't an absolute necessity (if you don't have debts or simply require your estate to be disposed of to satisfy your o/s liabilites instead of leaving it to you family etc), but income protection for those of a working age (of which I would class CI as a relation of) in my opinion certainly is.

Now, you may well be able to source a comparible standalone CI policy that is cheaper than your endowment policy, but do remember the other benefits that will be lost.

Hope this helps

Holly