Ark Life Convertible Protection Plan

[appd]

Hello

I have an Ark Life Convertible Protection Plan with cover of 266,000 and monthly premium 28.80. I have no idea if this is good or bad value.

I took this out with AIB in 2006 with my Mortgage. I recently paid off most of my mortgage with only 10K remaining.

Up to yesterday I had no idea of the name of the plan never mind anything about the concept of Convertible plans.

I have no dependents - is there any value in keeping this plan by converting to some type of life insurance or can I cancel it?

Thanks
APPD

 

[Marco 1972]

I have the same plan with AIB and l think the benefit of it is you can covert to Life insurance without a medical, questionnaire etc... maybe you should phone around / enquire from other companies what it would cost and would you need to fill out a medical questionnaire and if you would even be eligible if any conditions have developed in the meantime....

 

[LDFerguson]

I have an Ark Life Convertible Protection Plan with cover of 266,000 and monthly premium 28.80. I have no idea if this is good or bad value.

It's impossible to say without knowing your age, whether or not you smoke, the same for any second person covered on the policy (if applicable) and how long is left on the policy.

That said, if you have no dependents and no other debts, I wouldn't see the point in having more life insurance cover than the bare minimum you need. How long is left on your mortgage now?

Regards,

Liam
www.ferga.com

 

[Zebedee]

One thing to watch out for.

After you convert the new policy will have a higher premium due to age (fair enough) usually based on “standard rates”. Some life cos are closed to new business or are “not in the term assurance market”. Therefore their “standard rates” may not be competitive. In essence they are not looking for new business. I was recently involved in a case the life co was in run off and where the “standard rate” was 4x that of Royal London ( usually at or near the top of the table). While I don’t expect to get the most competitive rate I would expect to get something reasonably competitive after spending the extra amount of the convertibility option.

Lesson : On conversion, you’ll get cover but it could be at a significant price.

So if you are fit and well and need the cover, you should look around the market for a new policy and compare it with what you are being offered on conversion.

 

[appd]

It's impossible to say without knowing your age, whether or not you smoke, the same for any second person covered on the policy (if applicable) and how long is left on the policy.

That said, if you have no dependents and no other debts, I wouldn't see the point in having more life insurance cover than the bare minimum you need. How long is left on your mortgage now?

Regards,

Liam
www.ferga.com

Hi @LDFerguson
Non Smoker
46
Single
Male
Policy runs until 2040.
I left the term of the mortgage unchanged and reduced the monthly repayment. Remaining Bal 11K approx. My thinking was primarily to avoid having to take the deeds and leave open the option of a top up.

 

[LDFerguson]

Hi @LDFerguson
Non Smoker
46
Single
Male
Policy runs until 2040.
I left the term of the mortgage unchanged and reduced the monthly repayment. Remaining Bal 11K approx. My thinking was primarily to avoid having to take the deeds and leave open the option of a top up.

Assuming that you're in good health, you could have life cover of >€11,000 for the next 18 years for €10.10 per month - minimum premium.

 

[LDFerguson]

Assuming that you're in good health, you could have life cover of >€11,000 for the next 18 years for €10.10 per month - minimum premium.

The minimum premium of €10.10 per month actually buys you around €43,000 cover for the next 18 years which is more than you need, but that's the minimum premium anyway.

 

[Gazzaman]

It's impossible to say without knowing your age, whether or not you smoke, the same for any second person covered on the policy (if applicable) and how long is left on the policy.

That said, if you have no dependents and no other debts, I wouldn't see the point in having more life insurance cover than the bare minimum you need. How long is left on your mortgage now?

Regards,

Liam
www.ferga.com

Hi there, you seem like a person in the know

Can i get your take on this.
Ive just realised im paying €45 monthly to Ark Life(€43 last year) - Ark Life Convertible Safegaurd Plan
Im 44
Non smoker
Married 3 kids
Male
Policy runs until mid 2043
Mortgage was a 220,000 when taken out in 2008 but now currently sits around 40,000 with 5 years left on it.

Am i being fleeced? I think i am - I was on something called "indexation aslo known as inflation protection" and they have said it was something i asked for. Ive no recolection of this and just after having to stopped.
Any advice please & Thanks