jennifer999
Registered User
- Messages
- 16
What do you mean unit linked? Is there some savings element to this policy that gives it an encashment value even if you don't die? If so you might want to consider if this is the best/most cost effective way to invest as often it's not and you're better off keeping mortgage protection and other general life assurance separate from pure savings/investments.I have the following protection policy (unit linked - no end term - dual life basis) costing €119 per month
Do you really need the serious illness/accident benefit cover? If so why?- €235,000 life cover each & €225,000 independent serious illness cover each and accident benefit each.
Ditto. Why not take out general private health insurance separately or just go public if necessary?I wanted to add hospital cash benefit and surgical cash benefit to this policy for added protection but cannot afford an increase in premium.
I think it all sounds very complicated and you might be better off splitting your mortgage protection life assurance requirements from other insurance and investment issues. You should also probably get independent, professional advice.Therefore to match the premium I have at present I would be setting up a mortgage protection policy for €245,000 joint life 1st death, reducing life to €100,000 and SI to €150,000, and adding other benefits.
What do people think about this plan?
Are you sure that it does not involve some element of savings/investment that gives it an encashment value other than on death?Unit linked (termanology on policy) = whole of life plan
Why do you need more cover so? Remember that you may be entitled to Jobseekers Benefit it not self employed and it may well be possible to get some work to tide you over.I have a seperate income protection plan that will pay out after deferred period of 13 weeks.
Do you have an emergency "rainy day" fund for this purpose?I want to make sure that we can still pay the mortgage if something happens to stop us from working for a period of time.
OK - that could be a relevant factor alright.I believe that we need the serious illness option due to health issue's on both sides of the family.
I don't understand - seems to be overlapping cover. Are you sure that you're not overinsuring here/generally?We both have private health insurance with Bupa also - but want the hospital cash to offset costs incurred while possibly in hospital for more than 3 days.
You should consider getting independent, professional advice on your insurance needs in my opinion.Maybe I am over insuring, but I dont know where to cut back.
This seems contradictory to me. If it contains some element of savings then it is quite possible that this is not the best way to be doing this.There is a tiny portion of savings from our montly premium but its not a savings plan.
But aren't these covering stuff that is already covered by SW and/or your income protection?The Bupa policies are to pay for the cost of being in hospital, the hospital cash benefit is to cover the income loss of being in hospital.
See my first comment.Where do you think im going wrong and should cut back. Cos its costing a lot each month.
A unit linked Whole of Life policy is set up with a premium at outset based on a specified growth rate and generally the fund chosen is the managed. If the policy is set up with an assumed growth rate of say 6% then the fund would have to acheive 6% to maintain the selected growth rate. Also generally these policies has a guaranteed period of 10 years built in whereby it is guaranteed that the premium will not go up in the first 10 years but some will allow you to select a higher guaranteed period but at a cost. After the 10 years, the premium and sum assured would be acccessed to see if the premium could maintain the sum assured for the next five year and so on and so on, till 70 then generally annually. If it could not then the owner would be given two option, one to increase their premium whilst maintaining the sum assured and the other to reduce the sum assured but maintain the premium. If of course the fund grew at 20 per annum then the premium would probably never go up and there would be a fund building up, there are so many variables but they are not considered savings policies. One of the main benefits of these type of policies are their flexibility.
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