This means that you can both take out a new policy under the same terms as the original policy. Your age nor illness will not make any difference to the new policy. There will be no loading.I checked the policies and they do have a conversion option to a level term assurance or a whole of life cover (unit linked) for the same sum assured. What exactly does this mean?
You can convert the policy to another fixed term or to a whole of life (until death) policy. You'd need to contact them to find out what terms and conditions and premium would apply. You should also compare it to other options elsewhere just in case it's an expensive policy.Lconversion option to a level term assurance or a whole of life cover (unit linked)
Your age nor illness will not make any difference to the new policy. There will be no loading.
Our renewal last year was a conversion policy and age was not an issue with cost. The policy was renewed for 15 years which was the length of the previous policy. Age and illness were irrelevant. This was with Irish Life.While the illness will not be taken into account, the age will. The price of a replacement policy will be based on current age. Life cover isn't cheap at age 66.
I second ClubMan's advice above. Think hard about whether or not you NEED life insurance cover. Look coldly at what financial position either person would be in, in the event that the other one died. Take into account savings, assets, pensions etc.
Our renewal last year was a conversion policy and age was not an issue with cost. The policy was renewed for 15 years which was the length of the previous policy. Age and illness were irrelevant. This was with Irish Life.
Yes.Are you saying that you got a replacement policy from Irish Life using a conversion option with the same level of cover for a further 15 years at the same premium you had been paying for the previous 15 years?
The cost is static. It will run until we are 75.
Good point though I think we may open another topic about what we should shed as we age. Do we need VHI? Insurance policies?The conversion looks like good value but you really need to assess whether you'll need it until 75. If you're at 66 with two pensions, no dependents, and a mortgage paid off I don't see much point.
Personally I don't plan to be paying for life insurance in my 70s. Time will be short and better to spend what I have enjoyably!
Good point though I think we may open another topic about what we should shed as we age. Do we need VHI? Insurance policies?
Totally agree. As I said earlier...The conversion looks like good value but you really need to assess whether you'll need it until 75. If you're at 66 with two pensions, no dependents, and a mortgage paid off I don't see much point.
Personally I don't plan to be paying for life insurance in my 70s. Time will be short and better to spend what I have enjoyably!
... you should really ask yourself if you actually need further cover, especially since it will probably be very expensive at your age. Are either/both of you still working? Do you have pension income? What would happen in financial terms if one of you predeceased the other? Would a lump sum life insurance/assurance payout actually be needed?
Apologies I did not mean to give such an abrupt answer. Our last mortgage was for 15 years and the policy was taken out to cover it should anything happen. As the years went by it was index linked and the policy was for a much larger sum than the original mortgage. We invoked the conversion option to take out a replacement policy after the 15 year term. The value of the new policy is for the final amount of the old one. The cost is static. It will run until we are 75.
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