New Ireland Total Care policy

[Mrsros]

My mother is 71 and has a total care policy.She’s paying ~€60 per month and it increases every year with inflation.From what I can gather there’s only a benefit on death.She’s been paying in to it for about 10 years and the benefit is ~€38,000.My question is does she need to keep paying in at the inflation rate or can she leave it as is without any consequences?What happens if she stops paying in to it?Is it null & void?Also would there be an upper age limit on this type of policy?

 

[Jimbobp]

This policy sounds like a dreaded reviewable whole of life policy (RWOL). The idea behind them was that they were a combined savings/life policy. They work reasonably well when you are younger (you get the life cover you've signed up for + some savings element), but the older you get, the more money is hoovered up to pay for the life cover. It eventually gets to the stage that the savings element is eaten up and the life cover premium is 'reviewed' (i.e doubled..) every 5 years and eventually every year, so they eventually become a very expensive life policy. If your mother is after a policy for burial costs etc. she would be better served looking at a guaranteed whole of life policy (not sure if any will be available due to her age) or an over 50's policy with An Post or Irish Life (some restrictions on that, but probably better than a RWOL in the long run).

 

[gfg2013]

It is my understanding that New Ireland are currently reviewing those type of policies with a view to converting them to whole of life non re viewable so it might be worthwhile hanging in there until that is completed .