Need advice on switching life insurance policies.

Robbiesingh

Hi Forum Users,
Firstly I would like to apologise at the get go about my ignorance in this matter. The advice I need is probably pretty straight forward and it's to basically give me a leg to stand on and know how to proceed.
Basically the advice I need is basically on behalf of my mother. Up until recently my sister had been dealing with my mothers life insurance payments and due to unforeseen circumstances it will be me from now on. I have no clue about the policy or what a life insurance policy entails. I've have had a brief look online and requested information from her company ( with her consent obviously), but nothing tells me the following.
She has been making in my eyes, rather steep payments for the last 20 odd years. Now I now from researching online that she should be paying a l lot less. So I will definatley be looking into switching to a cheaper policy. My question is, what happens with regards to all the money she has paid up until now? I would like to know this, so I can go shopping for a new policy and approach the existing g company with some idea of what I can expect to happen to all the money she has been overpaying all this time.
I know this thread may seem quite pathetic compared to other issues raised here, but I am young and naive with these things. I am no longer talking to my sister nor is my mother and my mum has no clue about the policy either. At this stage I haven't approached the current policy holders. I just find the whole situation quite mind boggling. The amount of money paid so far is huge, what happens to it? And is switching to a cheaper policy even an option? Do I negotiate with the current policy holders for a cheaper payments?
I just don't want the outcome to be , that she looses out on anything. She has been a single widower most of her life and struggled to bring us up. My sister probably had more money than sense and just carried on paying the huge premiums. I however refuse to when I know it should be cheaper.
Any advice or help would be much appreciated. Many thanks in advance.

Kind regards ,
Robbie

dunstonh

Now I now from researching online that she should be paying a l lot less.

Not necessarily. She is now 20 years older. So, that works against her. Plus, her health may have changed. So, they are the negatives. The positives are that life assurance is cheaper today than it was 20 years ago and modern plans may be more suitable.

My question is, what happens with regards to all the money she has paid up until now?

Depends on the type of life assurance (and there are about 13 different types)

If it is pure term assurance or non-profit whole of life assurance then ending it will result in nothing. Just as you pay your car insurance and house insurance.

Do I negotiate with the current policy holders for a cheaper payments?

No. Life assurance is a contract cast in stone at the start.

ust carried on paying the huge premiums.

What is huge? £75pm, £100pm, £150pm?

Robbiesingh

Thank you for your reply, I've been able to establish what the current policy is today. Turns out she has not been paying too much and considering all the variables involved in determining the correct policy, her current policy is the best option. I will just have to carry on with the payments. Many thanks again.

Kind regards,

Robbie