Should I stay or should i go?

slowlinda60

I'm looking for advice or opinions on my dilemma, so please forgive my long post.

When my daughter was born I knew I was going to be a single parent (father lives on another continent and has never had anything to do with her) I was worried at the time if anything happened to me she would probably live with my parents. I decided to take out a life insurance policy to help financially if I died before she was an adult.

Originally the policy was with Pearl, but a few years in, it was taken over by Phoenix. I started by paying about £20 a month, and was told the payment would be £20,000. Both these figures would increase annually in line with inflation. The policy would only be valid until I was 69 and there was no cash in value at anytime. As I said this was to be there for my daughter if anything happened to me (or as something to leave her)

Fast forward 20 years and she is now 23 and I am happily married. Now comes the dilemma. The monthly payments are now £107 (and increasing) and the payout is about £60,000. The payments are killing me every month and I'm now worried that I will live beyond 69 (I'm 59 now) and she won't get anything. I've also now read terrible reviews of Phoenix life and problems with payouts.

So should I cut my losses now and just put the £100+ into a savings account (or similar) and at least she will get something from me or keep paying into policy for potentially a much greater amount for her.

Thanks for reading. Any advice?

superbigal36

. The payments are killing me every month and I'm now worried that I will live beyond 69



Sorry I had to laugh. Imagine not wanting to live beyond 69 just cos you want to cash a policy !!!
Also it's okay cos the payments are killing you anyway :rotfl:

Old_Lifer

Your post indicates that you have a 30 year (?) index-linked term assurance. You tell us that the premium has increased from £20 to £107 per month over the last 20 years and you are struggling with the payments.



With still 10 years of the term remaining and assuming the premium continues to rise steeply, how much do you expect to pay in premiums over the next 10 years?


As the policy does not have a surrender value there is no savings pot within the policy The current monthly premium of £107 is being used to purchase £60,000 of life cover each month. The premium will continued to increase so too will the sum assured.



Your daughter is now an adult.


Of course, we know nothing of the circumstances of yourself or your daughter and we know nothing of your state of health but may I be permitted to suggest that you ask yourself the question ' how much life cover do I actually need?'