Countrywide Lifetime Protection Plan

iwbus

I have a Countrywide Lifetime Protection Plan that I took out just over 7 years ago when I bought my flat. It costs me £24.50 PM and the current plan value is about £135 but is this a good deal? £24.50 seems like a rot of cash and I've no idea about this sort of thing. Should I stick with it, change it or just have some chocolate instead?

dunstonh

It costs me £24.50 PM and the current plan value is about £135 but is this a good deal?

Maybe. Maybe not. You have given us no detail.

£24.50 seems like a rot of cash and I've no idea about this sort of thing.

It could be a lot. It could be quite level. A typical family would spend more than £20pm on life assuance.

iwbus

dunstonh wrote: »

Maybe. Maybe not. You have given us no detail.

Well I've no idea what this kind of thing is all about so I don't know what detail I need to provide

silverfoxuk

Is this the policy here?

http://www.countrywideassured.co.uk/products/product_life_protect.html

To try to ascertain if the policy is

a) appropriate for your needs
b) good value/cover for those needs

you need to know a few more details of what you're paying for.

For example, what are the benefits of the policy as stated on your policy schedule/docs? Do you know what the policy will pay out on death?
If its £10million, then £24.50 per month premium is possibly good value. If its £10k, then £24.50 per month premuim may not be good value. How much life cover do you need to cover expenses/outgoings in the event of your death? Do you have dependants? If so, how long would they need an income? etc etc

Also, why do you need a whole of life policy? They have an investment element ie part of your premium is invested. You may be better off regular saving in an ISA or something else.

On the other hand £24.50 buys a lot of chocolate..........!

iwbus

44,970 death
90,298 critical illness
441 income replacement monthly benefit

I don't have kids, live with the ball but we aren't married. I just think that my policy value of £134.24 over 7 years isn't as much as if I'd saved £24.50 per month for 7 years which would work out at....a bit more than that

dunstonh

I just think that my policy value of £134.24 over 7 years isn't as much as if I'd saved £24.50 per month for 7 years which would work out at....a bit more than that

The fund value is not an investment. Its there to pay for future amendments that may occur when you are older. If you suffer a critical illness (ratio is about 1 in 6 before retirement) or you die (1 in 5 before retirement) then the policy would be far better in regards of payout compared to a savings account. That is what it is there for.

£24.50 for all that is very very good value. Although I fear the policy is on maximum cover basis with probably a 10 year review point. In which case, you would probably see a request to increase premiums significantly at that point making it uneconomic to continue compared to non-investment based contracts.

Getting that level of benefit on a conventional term assurance and PHI would probably cost more than £24.40 now but when Countrywide reprice it later on, it will be cheaper then. Providing you dont suffer a medical complaint which makes you insurable or increases your risk.