This is a question about Bank of Ireland Lifetime assurance. Any advice or input would be appreciated.
Firstly; if anyone could clarify what the difference between insurance and assurance is that would help.
In 1991, my mother took out a Lifetime 'Children's education plan' which included a life assurance policy. At the time the "initial sum insured" was £25,000. She was told that the assurance part would mature in 20 years (2011) or in the event of her death.
Several years ago (2003) the education plan was cashed in, just leaving the assurance. "A protection plan policy whose primary purpose is to provide life assurance cover in case of death." The premiums/cash pay out were duly amended. The new life cover was €140,000. In a letter she was told "Your benefit and premium will increase by 5% each year over the remaining term of the policy. Benefits will be sustained for 7 years and 3 months from the quotation date." (early 2011)
However, recently due to cash difficulties she has inquired as to what would happen if she cashes it in before 2011. She's been told this is not allowed; the policy can NEVER be cashed in. Nothing will be paid in 2011 (as she's been lead to believe) and she has to continue paying into the policy until her death. When she asked what would happen if she could no longer meet the payments, they said she'll lose all the money she's ever paid in and get nothing.
Can this be right? Can life assurance never be cashed in? If she lives into her 90's will she still be expected to make payments into her policy every month? And what were they always talking about 2011 for, leading us to believe that she would receive a lump sum that year as the assurance would mature after 20 years?
Sorry for such a long post, but I wanted to be detailed, plus I'm very confused. It seems unfair that after 16 years of paying into a plan she could be left with nothing.
Firstly; if anyone could clarify what the difference between insurance and assurance is that would help.
In 1991, my mother took out a Lifetime 'Children's education plan' which included a life assurance policy. At the time the "initial sum insured" was £25,000. She was told that the assurance part would mature in 20 years (2011) or in the event of her death.
Several years ago (2003) the education plan was cashed in, just leaving the assurance. "A protection plan policy whose primary purpose is to provide life assurance cover in case of death." The premiums/cash pay out were duly amended. The new life cover was €140,000. In a letter she was told "Your benefit and premium will increase by 5% each year over the remaining term of the policy. Benefits will be sustained for 7 years and 3 months from the quotation date." (early 2011)
However, recently due to cash difficulties she has inquired as to what would happen if she cashes it in before 2011. She's been told this is not allowed; the policy can NEVER be cashed in. Nothing will be paid in 2011 (as she's been lead to believe) and she has to continue paying into the policy until her death. When she asked what would happen if she could no longer meet the payments, they said she'll lose all the money she's ever paid in and get nothing.
Can this be right? Can life assurance never be cashed in? If she lives into her 90's will she still be expected to make payments into her policy every month? And what were they always talking about 2011 for, leading us to believe that she would receive a lump sum that year as the assurance would mature after 20 years?
Sorry for such a long post, but I wanted to be detailed, plus I'm very confused. It seems unfair that after 16 years of paying into a plan she could be left with nothing.