Hi
My Aunt took out a Lifesaver Account policy with Irish Life in 1991. The policy is now being reviewed annually and the current premium is circa €800 per quarter for life cover of €55,000. No doubt the fund is exhausted so there will be zero encashment value. In 2014 the premium was circa €670 for the same amount of life cover.
She took out this policy when she was 59 only a few years away from retirement and with all her kids having flown the nest.
I've read a few things on this type of policy on this site (threads are old and I didn't want to restart one of them) and other places and there isn't much positivity about this product.
I think she got very bad advice at the time she took out the policy and has blindedly continue to pay the premium as it has gone up at each review period. She mistakenly thinks she might have some encashment value in the policy but I haven't broken the news to her that the policy is only worth money when she dies.
I don't know how much she's paid into this policy over the years but given that premium has gone up by about 20% over the last year so based on this annual inflation (I know it won't be this every year but using it in this example the table below is the expect premium (if benefit stays level) vs death cover (if premium stays flat).
Money is very tight for my Aunt and her husband at the moment and they can't afford many more increases.
Would anyone be able to suggest any ideas as to what they should do next. I think she got very bad advice at the outset, would it be worth looking into my Aunt being mis-advised/mis-sold this product with the view getting some real benefit out of her premiums as I believe she should have been sold a savings product.
Many thanks for reading, if more info required please just ask.
FN
Age Qrtly Prem Death Benefit
82.00 797.00 54,428.00
83.00 956.40 45,131.01
84.00 1,147.68 37,422.07
85.00 1,377.22 31,029.91
86.00 1,652.66 25,729.61
87.00 1,983.19 21,334.67
88.00 2,379.83 17,690.44
89.00 2,855.80 14,668.69
90.00 3,426.95 12,163.09
91.00 4,112.34 10,085.48
92.00 4,934.81 8,362.75
My Aunt took out a Lifesaver Account policy with Irish Life in 1991. The policy is now being reviewed annually and the current premium is circa €800 per quarter for life cover of €55,000. No doubt the fund is exhausted so there will be zero encashment value. In 2014 the premium was circa €670 for the same amount of life cover.
She took out this policy when she was 59 only a few years away from retirement and with all her kids having flown the nest.
I've read a few things on this type of policy on this site (threads are old and I didn't want to restart one of them) and other places and there isn't much positivity about this product.
I think she got very bad advice at the time she took out the policy and has blindedly continue to pay the premium as it has gone up at each review period. She mistakenly thinks she might have some encashment value in the policy but I haven't broken the news to her that the policy is only worth money when she dies.
I don't know how much she's paid into this policy over the years but given that premium has gone up by about 20% over the last year so based on this annual inflation (I know it won't be this every year but using it in this example the table below is the expect premium (if benefit stays level) vs death cover (if premium stays flat).
Money is very tight for my Aunt and her husband at the moment and they can't afford many more increases.
Would anyone be able to suggest any ideas as to what they should do next. I think she got very bad advice at the outset, would it be worth looking into my Aunt being mis-advised/mis-sold this product with the view getting some real benefit out of her premiums as I believe she should have been sold a savings product.
Many thanks for reading, if more info required please just ask.
FN
Age Qrtly Prem Death Benefit
82.00 797.00 54,428.00
83.00 956.40 45,131.01
84.00 1,147.68 37,422.07
85.00 1,377.22 31,029.91
86.00 1,652.66 25,729.61
87.00 1,983.19 21,334.67
88.00 2,379.83 17,690.44
89.00 2,855.80 14,668.69
90.00 3,426.95 12,163.09
91.00 4,112.34 10,085.48
92.00 4,934.81 8,362.75