Life Acorn Life Cover Policy

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random2011

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Hi All

Would like some advice in relation to my life cover policy.

Firstly I am calling Life Cover as I am not sure about the difference between Life Insurance and Life Assurance.

This was a policy my wife and I had to take out before we got our mortgage.

It covers us in the event of one's death and also has critical illness cover.

However we have being paying this for 6 years and it started out at 50 euros a months and is now at 80 euros a month.

What I would like to know is if there are cheaper alternatives. I have being told by Acorn that theyre charges are front ended which means we pay more early in the policy.

To be honest I only expect this policy to continue increasing in cost.

Also we took this out through a broker so I would imagine they are continuing to get a share of the profit from our policy.

Something has always confused me about this policy. The broker stated when we took this out that we could claim a lump sump back out of this policy before the end of the policy. Makes no sense to me.

Would love to cut the costs here and have spoke to friends who say they pay nearly half that. Probably with a policy that does not include critical illness cover. Do we need critical illness cover as we are already paying into a family Aviva health insurance policy.
 
The policy sounds a lot like a unit-linked whole of life policy. I have views on that type of policy, which I've written down here.

In order to compare price, you'd need to post

  • Your own and your wife's date of birth
  • Whether or not either of you smoke
  • The balance outstanding on your mortgage now
  • The number of years left on your mortgage now
 
LDFerguson said:
The policy sounds a lot like a unit-linked whole of life policy. I have views on that type of policy, which I've written down here.

In order to compare price, you'd need to post

  • Your own and your wife's date of birth
  • Whether or not either of you smoke
  • The balance outstanding on your mortgage now
  • The number of years left on your mortgage now
Click to expand...


  • Your own and your wife's date of birth Me 31- Wife 29
  • Whether or not either of you smoke Neither of us smoke
  • The balance outstanding on your mortgage now 280k
  • The number of years left on your mortgage now 29 years remaining
 
random2011 said:
Hi All

Would like some advice in relation to my life cover policy.

Firstly I am calling Life Cover as I am not sure about the difference between Life Insurance and Life Assurance.
Click to expand...

They are interchangeable terms, historical differences but nothing for you to worry about.


random2011 said:
This was a policy my wife and I had to take out before we got our mortgage.

It covers us in the event of one's death and also has critical illness cover.

However we have being paying this for 6 years and it started out at 50 euros a months and is now at 80 euros a month.
Click to expand...

It looks like your cover is index linked, has your amount of cover also increased from €280k?

I don't know in what ratio Acorn increase their premium and benefits but it's probably an 8% increase in premium for a 5% increase in benefits.

random2011 said:
What I would like to know is if there are cheaper alternatives.
Click to expand...

Yes, using the figures you gave you could get basic mortgage protection (keep the bank happy) for €25 per month. The amount of cover reduces in line with your mortgage.

Life cover where the amount of cover remains at €280k would be €37per month.

If you wanted to add serious illness cover, the premium would rise to €92 per month - more that you currently pay but the price is fixed at €92 for the life of the policy.

random2011 said:
Something has always confused me about this policy. The broker stated when we took this out that we could claim a lump sump back out of this policy before the end of the policy. Makes no sense to me.
Click to expand...

There will be an investment element built up in the policy. Read LD's post.

random2011 said:
Do we need critical illness cover as we are already paying into a family Aviva health insurance policy.
Click to expand...

They are independent products, one will pay off your mortgage should you contract a specified serious illness. One will contribute to your hospital costs.
 
Under €25 per month for Mortgage Protection Life Insurance - will clear off your mortgage in the event of either death. Cover starts at €280,000 and reduces to zero over 29 years given that the balance of your loan will also be reducing.

Under €64 per month for the above with Specified Serious Illness cover - half the life cover amount would be paid if either one suffered one of the specified serious illnesses.

These are fixed cost policies where the premium is guaranteed not to increase for 29 years.
 
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NorfBank said:
They are interchangeable terms, historical differences but nothing for you to worry about.




It looks like your cover is index linked, has your amount of cover also increased from €280k?

I don't know in what ratio Acorn increase their premium and benefits but it's probably an 8% increase in premium for a 5% increase in benefits.



Yes, using the figures you gave you could get basic mortgage protection (keep the bank happy) for €25 per month. The amount of cover reduces in line with your mortgage.

Life cover where the amount of cover remains at €280k would be €37per month.

If you wanted to add serious illness cover, the premium would rise to €92 per month - more that you currently pay but the price is fixed at €92 for the life of the policy.



There will be an investment element built up in the policy. Read LD's post.



They are independent products, one will pay off your mortgage should you contract a specified serious illness. One will contribute to your hospital costs.
Click to expand...


If i cancelled the policy now could I cash the policy or is it a case of starting again.

Also I have a private pension fund which Acorn (sold through the Broker) Paid about 1600 into it before ceasing paying almost 2 years ago. I think its just dormant now. I already have a work pension and have being told I cannot transfer the Acorn one.
 
random2011 said:
Also I have a private pension fund which Acorn (sold through the Broker) Paid about 1600 into it before ceasing paying almost 2 years ago. I think its just dormant now. I already have a work pension and have being told I cannot transfer the Acorn one.
Click to expand...

Assuming that the Acorn pension is a Personal Pension and your work pension is an Occupatonal Pension Scheme, there's not a lot you can do. You can leave the Acorn fund until retirement - it will continue to be invested in whatever funds you chose. Might buy you an ice-cream when you're 65. ;)
 
LDFerguson said:
Assuming that the Acorn pension is a Personal Pension and your work pension is an Occupatonal Pension Scheme, there's not a lot you can do. You can leave the Acorn fund until retirement - it will continue to be invested in whatever funds you chose. Might buy you an ice-cream when you're 65. ;)
Click to expand...

Lol...
 
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