Life insurance and buy back?

SIM

I was declared bankrupt in June 2018. OR wrote last week about buying back the beneficial interest in my life insurance policy. It will cost £50.
I'm a bit confused though:
- Is it worth buying back to life insurance policy? I've had it for about 9 years.
- Can I not just cancel the policy and get a new one? Or would this now be difficult with the bankruptcy in mind?

RattyIrk

Was a no brainer for me at £50. Would have cost me a lot more to get a replacement policy in terms of monthly premiums. The older you get the more expensive it gets.

SIM

Thanks. Just a bit confused, does your bankruptcy not effect the policy that would be buying back?

debt_doctor

Hi,

You can indeed just get a new policy and cancel the old one, but take keen notice of the consequences re new policy price, lost privileges etc.

If you do nothing, and keep paying to keep your current policy in force, then whenever the policy pays out, many many years later, the payout goes to the OR.

So, either pay £50 and keep the policy or don't pay £50, cancel policy and get a new one.

DD

RattyIrk

It has no effect on your policy as you are simply getting them to disclaim their interest in it and any proceeds.