Life Life assurance gone from €95 to €184!

P

Park5

Guest
Looking for some advice please.... Not really with all this side of things. Have had a Complete Protection Provider policy with Friends First for 10 years or so. It's a joint policy with my husband. We do not have a mortgage protection policy as this is a combined policy to cover all eventualities as far as I know. We currently pay €95 per month and just received a letter saying to hold this policy we will have to pay €184 per month. Is this ethical??? Surely, surely it can't increase by that much.... Any suggestions as to where is best place to get a quote for similar. We are mid-40's with 5 years to go on our mortgage, with 3 teenagers. Thanks in advance.
 
Sounds like the policy you have is a reviewable contract, which gives the option to Friends First to review your premium after 10 years, each subsequent 5 years and when the older of you reaches age 70, annually.

What exact ages are you both? Do you smoke? How old is your youngest child? How much cover does the Friends First policy provide in the event of death? Does it provide cover in the event of any other event, e.g. specified serious illness, hospitalisation etc.?

It might be possible to replace it with a fixed cost policy.

Liam D. Ferguson
 
Thanks for your reply. We're 46 and 44, three children 18, 16 and 10 and 51/2 yrs of mortgage of E70,000. Policy is Complete Protection Provider with Life Cover (1st Death) E436,000. Double Cover CIB E98,000 and Hospital Cash E95.00. They have offered to reduce above by 41.50% with no hospital cash for the same cost per month E98.00 or increase to E185.00 per month and hold same cover. Should we just change policy altogether?? Really appreciate your help - great when you haven't a clue about all this.
 
The quote of €185 per month is actually reasonable for the level of cover the policy provides, although you need to remember that it will be reviewed again in 5 years time.

Your next job is to establish if you actually need the amount of cover the policy provides. Separate the mortgage and the personal protection. A basic Mortgage Protection life assurance policy covering just the reducing balance of your mortgage should cost less than €12 per month assuming you're both non-smokers and in good health. Then you need to figure out how much additional cover you need in the event of either death or illness. This would be a calculation involving your take-home pay figures, household expenses, other life assurance cover or illness cover and savings/investments. (Basically - have a cold hard look at where you would be financially in the event that either of ye died or was seriously ill.)
 
Thanks for the advice. Will be taking long hard look and reducing in current climate for sure!!!
 
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