Life Assurance Help

DLA45

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SeniorSam

Highly unlikely. Your parents wanted to leave a lump sum of around £800-£900 by paying £6 per month. Had they died within the first few years, there would have been no complaints from the family, because the insurance company had to pay out. Now, because the insurance company have carried the risk all this time, the family are not so happy.

It was an easy amount to calculate that if they lived for 10 years or more, the amount paid in could exceed the amount to be paid out, so it's a risk business that your parents were prepared to take.

With parents being 13 years older, their premiums now would be higher if they started a new policy. There is a cost for everything in life and this time it has worked in favour of the insurance company. They have to win a few to make insurance viable.

Sam

ACG

It is correct.

Its life insurance, you could be financially better off or you could be financially worse off. Its not intended to pay out more than you pay in, its intended to pay out a lump sum on death... that could be more or less than is paid in.

dunstonh

Can you please advise if there is any financial body that we can go to, to see if this is correct.

Any local IFA should be able to verify this. However, what you post sounds correct.

They should be happy that they are alive and that the policies havent paid out the life assurance amount. The alternative being that one of them or both would be dead.

DLA45

Thanks, I don't need anymore replies to this posting.