My parents have Sunlife 18 February 2022 at 1:16PM in Insurance & life assurance 3 replies 174 views

nolastchance

My mum is nearly 70 and my dad is 70. They both have sunlife cover and there is an option called 'paystop'. What does it mean for them if they use this option? Will they lose out? Sorry I haven't anymore information.  

Sandtree

nolastchance said:

My mum is nearly 70 and my dad is 70. They both have sunlife cover and there is an option called 'paystop'. What does it mean for them if they use this option? Will they lose out? Sorry I haven't anymore information.  

Always worth reading your own documents as these are long term policies and at times things can evolve or marketing names recycled to something else.

PayStop as it is currently offered by SunLife is a cap on premiums... so they will have been paying more when they first took out the policy but they have a guarantee that the premiums will never go above the paystop amount. It will kick in automatically if any review of premiums would have otherwise exceeded the limit

fastr1uk

Paystop is not a cap on premiums. When your parents took out the policy they agreed to pay an increased premium so that they could stop paying at an agreed age but remain covered . "You can tailor your plan with PayStop which is our Premium Cap Option. This means you’ll pay a slightly higher premium, but your payments will stop at an agreed date rather than on death" 

dunstonh

Quite a lot of whole of life assurance plans (rather than over 50s  plans) had the stop paying at age xx but retain benefits as default.   So, I suspect Sun Life modelled that option on the conventional life assurance option.