Phoenix Covermaster

3 Posts

Hi - can anyone offer any advice on what do with an Abbey Life Covermaster policy and an Abbey Life Covermaster (LRP) policy (now run by Phoenix) taken out in 1982 and 1992 which are now worth 50% of what's been paid in over the last 30 and 40 years when one of them dies - or even less than that if cashed in early. Both my parents are named on the policies and it was in a recent cost-cutting exercise that I realised they are paying out £300 p/m to Phoenix for these policies! Any advice much appreciated.
thanks
thanks
0
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You have posted in the missale section, but there is nothing in the post that indicates missale (putting aside that is it long before regulation started as well).
Why did your parents take these out?
Does that financial need still exist?
Also, are you really sure they have paid £300pm since commencement? £300pm in 1982 was a heck of a lot of money. The average annual wage was £6552 a year. £300 in 1982 money is about £1200 today.
Normally with these plans, from about year 15 onwards, they have a 5-year review point, and if they are off track, then the premium gets increased, or the sum assured reduced (policyholder decides which). I would have thought it more likely that the premium started with a very small amount, and then each 5 years it got increased a bit.
Given their current circumstances do they still need any of the cover?
Thanks for your explanation! Do you know what LRP stands for?
thx