Life Insurance

welshspendthrift

My life insurance company FriendsLife have told me that i need to up my premiums from £15 to over £40 a month to keep the same benefit or it will drop from £115,000.00 to just over £6000.00! They havent given an explanation for why , could it be that I am now over 50! The policy is one that only pays out when I die . I cant really afford to up the payments but if I were to get run over by a bus tomorrow would leave my adult child ( single parent) with debts and mortgage that would not be covered

Has anyone got any advice please?

dunstonh

They havent given an explanation for why , could it be that I am now over 50!

Partly yes. Also, if it is investment linked and taken out in the 80s and 90s then its likely to be for insufficient investment returns

Has anyone got any advice please?

It may be that a modern alternative could be better.

McKneff

welshspendthrift wrote: »

My life insurance company FriendsLife have told me that i need to up my premiums from £15 to over £40 a month to keep the same benefit or it will drop from £115,000.00 to just over £6000.00! They havent given an explanation for why , could it be that I am now over 50! The policy is one that only pays out when I die . I cant really afford to up the payments but if I were to get run over by a bus tomorrow would leave my adult child ( single parent) with debts and mortgage that would not be covered

Has anyone got any advice please?

Re the bold, your adult child would not be liable for any of your debts.
(if you mean their debts, well they have got them now so would still have the same debts whether you were here or not)

Mortgage - If you popped your clogs, leave the house to your adult child, they can sell it and clear the mortgage.

As long as I have savings enough to pay for 2 funerals I am quite happy.

Have you worked out how much you will pay these people if you live till you are 95. Dont know about you but I'm not prepared to take the chance.

[Deleted User]

McKneff wrote: »

As long as I have savings enough to pay for 2 funerals I am quite happy.

I haven't even got enough for my funeral.

I'll let the taxpayer (who has benefited from the tax I've paid for maternity treatment, nursery places, child Benefit, etc. - but never used) pay for my disposal.

Quentin

McKneff wrote: »

......As long as I have savings enough to pay for 2 funerals I am quite happy. .....

Why do you want to have 2 funerals?

Lady Di had a big turnout, but managed with one like the rest of us.

(Unless your board name hides an even bigger celeb than her??)

McKneff

Nah, wish I was a £ behind her. Well, her estate anyway

1 for me and one for other half, silly.

OP, the state wont pay for your funeral, your estate ie your house will pay for your funeral

vaio

McKneff wrote: »

........1 for me and one for other half, silly........l

with a bit of careful planning you could take advantage of the BOGOF scheme the Coop are running

welshspendthrift

Have you worked out how much you will pay these people if you live till you are 95. Dont know about you but I'm not prepared to take the chance.[/QUOTE]

Good point there! I think have paid enough already ! And my grandparents lived to a ripe old age so if i avoid buses lol should be around a good while lol
I am hoping I will be around another few years by which I will have paid off my debts but mortgage has a while to go !
Thanks to dunstonh to for your help and advice.

dunstonh

If this is a whole of life plan, then many of these have a maximum premium paying age (sometimes as low as 80) where you can stop paying the premium but retain the benefits.

welshspendthrift

Found out today that this was a reviewable policy( not a whole of life policy, will need to take some independent financial advice I think

[Deleted User]

McKneff wrote: »

OP, the state wont pay for your funeral, your estate ie your house will pay for your funeral

If they try to use my house, to pay for my funeral, the Council won't be best pleased.