life assurance

S

sysman

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what proves better value for money in the long term - convertible term life assurance or a 'whole of life' life assurance policy - i've noticed that a lot of online quotes are based on a joint life term insurance, although I have seen dual life term assurance - but i haven't seen any dual life, 'whole of life' assurance quotes available online. Is it because it is poor value for money or is there another reason. I have a young family and i'm currently reviewing life assurance requirements for both myself and wife, I would also be using this policy to satisfy the bank for mortgage purposes.
 
thanks clubman - i had missed that topic. is there any advantage in taking out a whole of life policy when you are young as opposed to taking out a convertible term insurance policy, and converting it to a whole of life policy in 30 years.
 
I personally tend to consider it better to keep mortgage protection related life assurance and general life assurance separate and going for the cheapest/most basic policy in the former case. On the other hand when I took out a mortgage about a decade ago I did take convertible term in case I needed to convert it when the mortgage was paid off but didn't bother when the time cames. Others may recommend getting a single policy to cover mortgage and general life assurance needs (which need to be assessed carefully and with reference to the next of kin's requirements/lifestyle etc.). I'm not sure if having a single policy might cause some administrative issues in the event of a claim where the lender is claiming their portion while the next of kin is waiting on their share?
 
Convertible life assurance

I converted a life assurance policy recently.

I assumed when I was taking out the convertible policy (ten years ago) that I would be able to convert to a 'whole of life' policy. This was not the case. The company only allowed me convert to a policy that the company actually sell. They discontinued selling 'whole of life' a few years ago. I ended up converting to a (slightly) longer fixed term policy.

In theory you could end up with a convertible pociy (and paying a premium for convertability) and end up snookered with no suitable product to convert to.

ajapale
 
convertible policy

Hi aj, Which company did you have the convertible term policy with?
 
Re: convertible policy

I would be concerned with the basic thrust of this thread. Why should anybody (apart from in very specific tax-planning cases) need/want a whole of life policy? Is it not the case that these are bad value for money, given that the life cover has to be priced not really on an "insurance" basis i.e. it's a certainty that we all die in the long run? Am I missing something?
 
Re: convertible policy

oysterman - you have pointed out what I was attempting to understand, and why I originally started the thread. After reviewing my own cover - I have opted for basic mortgage protection, and to use the benefit from my employer paying 4 times salary for my life assurance purposes.
 
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