Letter from life insurance company. Briefly it said your current monthly payment will cover you for another year but if you like we will increase it by abouT 10% immediately and guarantee to hold this new arrangement until 2021
What would you for ?
Pay the same amount for another year and see what happens. If monthly payment goes up without a proportionate increase in payout then change insurance co. Or self insure.
Do you actually need life insurance? Is it also a means of saving - or simply insurance?
I'd ask you an awful lot more questions, before advising you. What sort of policy is this with variable premiums? How competitive is it compared with a new policy? Why do you need it at all?
The answer might depend on my age and my health!
Cash it in and stop wasting money?
Cheers
If it's a whole life policy, many have zero cash value.
There is a well established method for releasing money from these ;-)
Cheers
Ah yes, ask Mr Darwin (but he got caught).
They have a value on the open market. We sold ours. (which means someone, somewhere will profit from my death...)
Andy
You sold an endowment policy, surely? Not much market for whole of life policies.
Thats wj=hat I have decided to do. Keep up the exiting payment.
I dont think changing insurance companies is feasible
No I dont need life insurance. My wife needs it. My broker sat me down once and proved that in the end the policy would pay out more than I paid in. in simple terms.
google "traded life policy"
Why?
Because that's the term for sold-on life policies, as I assume Andy knows what he sold.
The point is that they are often referred to as TEPs (Traded Endowment Policies), whereas the OP appears to have a whole of life policy. Buyers of secondhand policies will not normally stay in touch with the seller, so won't know when he dies. They can can claim on an endowment when the policy matures at the end of the term. With a WOL policy, they could not claim without proving the original policyholder has died.
HTH
Right - so not just like insurance which only pays out when you die? Some form of saving plan too with life insurance attached?
Indeed so. And when I follow your search I get
"Traded life policy investments (TLPIs), which are sometimes called ?death bonds?, are complicated products generally unsuitable for the mass retail market."
My parents were sold it on the basis I could use it to guarantee a mortgage. By the time I needed a mortgage and it had been passed on to me £5000 wouldn't have helped very much. Cash in value was far less than we'd paid in; the sale value was more.
Andy
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