Whole of Life insurance - is it worth it?

vsman

Back in '94 when my wife and I embarked on to the dreaded property ladder, we bought a "whole of Life" life insurance. The premium is indexed, and has risen over the years, and is fairly significant considering the sum assured (doesn't cover our entire mortgage now so we have to 'top up' with a term policy).

I am loath to cancel it as I see it as a reasonable investment, and as it pays out at death by natural causes, our life insurances provide a very tidy sum for our kids once we depart our mortal souls.

The insurance also has a critical illness element to it which I also find useful.

....but despite all of this, is it worth it? I could probably get a term insurance for half the price, and then invest the saving, but then we wont have the assurance that the kids will get a good inheritance.

Also, as the policy is 13 years old this year, does anybody know how I could get it evaluated, just to make sure it actually does for us what is required, e.g. upgrading the cover, increasing the critical illness cover (in case new illnesses have 'appeared' since '94) etc etc.

thanks for your comments

dunstonh

You cover the need. If you dont have a whole of life need, you dont pay towards a whole of life assurance.

Also, as the policy is 13 years old this year, does anybody know how I could get it evaluated, just to make sure it actually does for us what is required, e.g. upgrading the cover, increasing the critical illness cover (in case new illnesses have 'appeared' since '94) etc etc.

Go to any IFA and they can do an analysis of it and compare it with modern plans and alternatives