Life Life - Reduce cover without new policy?

sadie

Registered User
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Myself and spouse have life cover. Dual lives, convertible.
This is separate from mortgage cover. We want to reduce the level of cover. Broker is suggesting a new policy, but recall we were told at the time we could reduce (but not increase) cover without a new policy?
 
Hi Sadie

Some life companies will allow you to reduce cover based on how long the policy is inforce or the level of premium you are paying or the type of policy. Best bet is to ring the life office and ask them can they do this.

That said it may be more cost effective to take out a new policy. You should ask your broker to provide you with written product comparison and also detail the advantages and disadvantages of taking out a new policy.
 
It used to be the case that you couldn't, I think it was more a systems thing than anything else. With the advancement of technology, they have been able reduce and increase cover without having to take out a new plan.

It will be cheaper for you to be able to reduce the existing plan as the premium will be based on your age when you took out the plan. Any new plan will be based on your age now. Plus, a new plan will require underwriting whereas reducing the existing plan is just a letter of instruction.

Double check with the life company or get your adviser to find out. It may be a case that the older plans cannot be altered.


Steven
www.bluewaterfp.ie
 
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