life cover causing problems

O

osseola

Registered User
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Hi, I have 2 life policies covering both spouse and I for substantial amounts. the current combined bill c. E850/month. Premium very high and finding payment impossible as now both living on illness benefit (both significant health problems) plus a small pension - (due state pension 2017 -too old to remortgage and couldn't fund anyway) Both are 'all of life' not term policies. Extremely reluctant to let either go as amount we have paid in over the years is equivalent of payout at this stage - and cannot walk away and let insurance company away with all the cash we have paid in - as it is only thing surviving partner will have and then pass on to kids. Is there a possibility/probability that some sort of deal could be worked out with a financial institution to loan against policy -maybe if they took up the payment on one or both policies for next say 5-10 years - one of us will probably have passed on by then ....or to get even consider a loan with these as collateral in our current financial circumstances ?
 
osseola said:
thanks for reply...but they are struggling with mortgages etc so last thing I want to throw at them...trying to find a different workable option
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Fair enough, but €850 split between a few people isn't as big an issue. And it's for everyone's benefit ultimately. Is there anyone else that could help?
 
Gordon Gekko said:
Fair enough, but €850 split between a few people isn't as big an issue. And it's for everyone's benefit ultimately. Is there anyone else that could help?
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nobody else. I appreciate your concern but really I posted here looking for some advice of any financial mechanism where I can get the issue straightened out for next few years without involving family. If that's not a possibility then will have to rethink.
 
osseola said:
nobody else. I appreciate your concern but really I posted here looking for some advice of any financial mechanism where I can get the issue straightened out for next few years without involving family. If that's not a possibility then will have to rethink.
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Might be people on here willing to assist with monthly payment, if you could offer an arrangement
 
OP perhaps you could put in some numbers.

Value of house.
Value of policies.

You are looking for a financial institution to lend you €10,200 on an interest only basis for an unknown period so the security is key.

€10k per year on a €500k house with €500k of life assurance is a no brainer.
 
Joe_90 said:
OP perhaps you could put in some numbers.

Value of house.
Value of policies.

You are looking for a financial institution to lend you €10,200 on an interest only basis for an unknown period so the security is key.

€10k per year on a €500k house with €500k of life assurance is a no brainer.
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thanks Joe 90 I will investigate that possibilty with bank. House value half that but policies spot on
 
Are any of those lifetime loan/seniors money/equity release guys still in business?

I don't normally like them, but where there's a clear benefit like this, they might have merit.
 
Gordon Gekko said:
Are any of those lifetime loan/seniors money/equity release guys still in business?

I don't normally like them, but where there's a clear benefit like this, they might have merit.
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thanks all for comments. I have been told that it is possible to sell a whole life policy for cash. Apparently it is not unusual in USA. Does anyone know of a company in Ireland/EU who wil do a deal for cash and take over repayments as the beneficiaries? As I have 2 policies I am giving this a lot of thought as a decent cash settlement for one could finance the other..
 
This was a big thing years ago here in Ireland, I remember companies doing it but I have not heard of it in a long time now, back in the endowment mortgage days there were companies who would buy the guaranteed policies where the customers were clearing the mortgage for whatever reason. You could get more by selling the policy than by cashing it in.
 
osseola said:
Hi, I have 2 life policies covering both spouse and I for substantial amounts. the current combined bill c. E850/month. Premium very high and finding payment impossible as now both living on illness benefit (both significant health problems) plus a small pension - (due state pension 2017 -too old to remortgage and couldn't fund anyway) Both are 'all of life' not term policies. Extremely reluctant to let either go as amount we have paid in over the years is equivalent of payout at this stage - and cannot walk away and let insurance company away with all the cash we have paid in - as it is only thing surviving partner will have and then pass on to kids. Is there a possibility/probability that some sort of deal could be worked out with a financial institution to loan against policy -maybe if they took up the payment on one or both policies for next say 5-10 years - one of us will probably have passed on by then ....or to get even consider a loan with these as collateral in our current financial circumstances ?
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Would you keep paying car insurance until your car was stolen and you could claim on it?

Life insurance is there to replace lost income and/or pay off debts on death. If neither of these apply to your situation, cancel the policies.

The whole of life policies are reviewed on an regular basis and will only become more expensive. Spending €850 a month on something you can't afford or need so you can leave something to your kids does not make sense. How about asking your kids if they would be ok if you cancelled the policies so you could have a better standard or living now but they wouldn't get any inheritance. What do you think they would say?


Steven
www.bluewaterfp.ie
 
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