Partners life insurance

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renegadefm
renegadefm Posts: 1,303 Forumite
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in Insurance & life assurance
Partners insured with LV life insurance, but we just had somone tried to ring her offering her better insurance as they seem to think her policy ends in 2037 which means she would still be only in her late 50's.

I never knew these kind of life insurance covers existed. Has she been conned. Shes paying 20 pounds a month since October last year.

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  • renegadefm
    renegadefm Posts: 1,303 Forumite
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    Sorry it would mean her LV cover would end when shes 63, but who has a crystal ball about when we die?
    The cover is for £160k

    What is the point of life insurance that ends before you potentially actually die?

    I never knew insurance cover like this existed.
  • MovingForwards
    MovingForwards Posts: 16,921 Forumite
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    Was it taken out around the same time as a mortgage? If so, it was probably enough of a payout if she died during the mortgage term.
    Mortgage started 2020, aiming to clear it in 2026.
  • SonOf
    SonOf Posts: 2,631 Forumite
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    I never knew these kind of life insurance covers existed. Has she been conned. Shes paying 20 pounds a month since October last year.

    Most life assurance policies sold in the last 25 years are known as term assurance. You have level term assurance and decreasing term assurance.

    Whole of life assurance plans are the only ones that go on for life. However, they are significantly more expensive than term assurances.
    Has she been conned.
    Almost certainly not.
    a) whole of life is unusual. Term assurance is normal
    b) if she didnt buy via an adviser then she chooses the terms and product type. If she buys via an adviser, the adviser is required to provide suitable advice based on needs and the available budget.
    What is the point of life insurance that ends before you potentially actually die?

    The majority of the population do not have a whole of life need.
    For example, a mortgage only needs life assurance whilst you have a mortgage. Or family protection only needs to exist whilst the children are young and no longer financially dependent on you. Or if its income replacement/pension shortfall then it only needs to exist whilst you are working.
    I never knew insurance cover like this existed.

    There are around 13 different types of life assurance in the UK. i suspect your knowledge of life assurance is probably pretty weak if you didnt know that the dominant types of life assurance are term assurance. You not knowing doesnt make it a con.
  • renegadefm
    renegadefm Posts: 1,303 Forumite
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    No mortgage involved whatsoever mate. I got no mortgage and my partner just lives with me.

    She only took it out October 2019 but she keeps getting calls from other companies suggesting does she realize. It ends in 2037 when shes 63.

    So alarm bells started to ring today when I asked her to look at her policy, and sure enough it says ends in 2037.

    I never knew policy's like this existed. I thought life insurance meant exactky that, until you die.
  • renegadefm
    renegadefm Posts: 1,303 Forumite
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    She took out life insurance because she didnt want to make the mistake her parents did and didnt take out any life insurance and we were basically left with expencive funeral bills. Even their funerals were delayed as a result.

    She just didnt want that for her children, but an insurance that runs out at 63 isnt much good is it?
  • SonOf
    SonOf Posts: 2,631 Forumite
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    She only took it out October 2019 but she keeps getting calls from other companies suggesting does she realize. It ends in 2037 when shes 63.

    Her life assurance details are not in the public domain. So, any third party contacting her telling her this must have her details unlawfully. Only the insurer and the original selling company (if not direct) would know what life assurance she has.
    She just didnt want that for her children, but an insurance that runs out at 63 isnt much good is it?

    So, why did she take it out then as it would have been clear from the initial quote, the statement of demands and needs (if an adviser was used, the cancellation rights and the policy schedule that it has a fixed term.
  • renegadefm
    renegadefm Posts: 1,303 Forumite
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    She has learning difficulties so probably didn't assume it would end when shes 63. She probably just went ahead and agreed to it. But I must admit I didnt know myself such a policy existed, I assumed life insurance is just that, for life until death.

    What should she do now?
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    renegadefm wrote: »
    She took out life insurance because she didnt want to make the mistake her parents did and didnt take out any life insurance and we were basically left with expencive funeral bills. Even their funerals were delayed as a result.

    She just didnt want that for her children, but an insurance that runs out at 63 isnt much good is it?



    It really depends on the individual in terms of how long the term ends. Your probably talking about possibly funeral insurance policies.


    True whole of life insurance policies which last until you die are very expensive and not everyone does them now a days.


    Funeral insurance does have its place, but you do pay more than you get out for some. Sometimes its better to save the premiums into a savings account to be used for such purpose.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Aretnap
    Aretnap Posts: 5,214 Forumite
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    renegadefm wrote: »
    What is the point of life insurance that ends before you potentially actually die?
    The point is to protect your family in the event that you die prematurely while they are still financially dependant on you. For example, to ensure that your children are fed and clothed and educated until they are old enough to be financially independent, or to ensure that your partner isn't left with bills and a mortgage that he/she can't pay without your income.

    As you get older there is much less need for this type of cover. You've paid your mortgage off, your children are grown up and earning their own way in the world - so your family would be much more capable of managing without you. So it's natural for the policy to have an end date when it is no longer required.

    Yes you might want to make sure that your funeral is covered - but £160K is a lot to spend on a funeral. And doubtless your children wouldn't say no to a six figure sum when you die - but if you own your home they're presumably already going to get that, so how much more do they actually need? If you keep paying lots of money for cover that you no longer have any real need for, that would be when you were really being conned

    If you really want to leave your children a large nest egg you CAN get a whole of life policy, which pays out when you die, regardless of whether that's tomorrow or when you are 100. But they are considerably more expensive than term policies (obviously) and if you live to 100 you will still end up paying in significantly more than they pay out. You are probably better off putting money aside each month if you want to leave a nest egg - you will know that if you die young the children will get the insurance payout and if they die old they will get the large pile of savings. Plus the money is actually available if you need to spend it while you are alive.
    renegadefm wrote: »
    What should she do now?
    Don't trust anyone who cold calls you selling financial products.

    Have a good hard think about what sort of cover you will actually need at various stages of your life. Are you trying to replace a lost income, cover a mortgage, provide for funeral bills, or just leave a chunk of cash for your grown up children when you're gone? They type of policy you need will depend on what you are hoping to achieve - you may need more than one if you have several of these goals.

    Be wary of cold callers.

    If the whole subject is confusing or if you're not sure exactly what type of policy is best, consider taking professional advice from an IFA or a mortgage broker who will be able to assess your needs and recommend the right products to help you cover them.

    Did I mention not to trust cold callers?
  • mgfvvc
    mgfvvc Posts: 1,179 Forumite
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    renegadefm wrote: »
    What should she do now?
    Amongst other things, sign up for the Telephone Preference Service.
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