Whole of life conversion

F

Frank8211

Registered User
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I took out a modest 20-year life insurance policy 20 years ago. It insured me for equivalent of €35,000 for premium of about €80 pa.
This is now expiring and the company has offered to convert it into a 'whole of life' policy for the same amount with no quibbles, no medical checks etc etc. My initial reaction was to do this but the premium is about €730 per annum. Im now wondering whether this is worth it or whether I should let it lapse. Comments appreciated
 
Do you need this cover? What other insurance coverage do you have? What is your overall financial position? Do you have dependants? Do you have any coverage through your employer? Any health issues since you took out the policy?
 
Re your questions Clubman: Don’t particularly want it unless its good value. My reason for taking it out in the first place was that I had bought a house and didn’t want some sort of debt situation if I popped my clogs. No other life insurance. No dependents,. I own a home and a mortgaged investment property. I think there is some sort of death-in-service thing with my employer but that’s all. There might be health issues if I was examined on that because I was refused mortgage protection insurance a few years ago because of a minor accident.
 
Firstly, I'm not Clubman.

Secondly, I think you're looking at it the wrong way. Forget the question of value. Focus on whether you need more insurance. To be blunt, if you have no dependants (and you don't expect to have dependants in the future), why would you want insurance? Why do you care about debt if you pop your clogs? You will probably find that your death-in-service thing is quite generous - I've seen such cover in the region of 4 x salary.
 
Apologies for mixing you both up. I dont particularly want insurance, but wondered maybe if it would be useful if I needed some sort of security for a loan or mortgage at some stage. The thinking in taking it out back then was not to have any risk of debt if I died because I had just bought a house, was possibly in negative equity and my next of kin would have been elderly mother. The premium was pretty modest also. I dont think the death in service thing is anythung like 4 times salary, maybe more like one time Should I gather from your reply youre not generally that enthusiastic about life assurance of this type unless there are solid reasons for wanting it ?
 
Would you buy something/anything without having a good reason ?

I can understand an impulse buy of a CD or a shirt but a life assurance policy ?

Then again, we are all free to spend our money as we like, well within the constraints of the law, I suppose, but the fact that your a re asking the questions implies that you are looking for a rational reason for buying this product/service. If you feel that when you die, you would like to leave more money to your dependants/next of kin/state then that's a good reason to buy the policy - in fact, it's the only reason.
 
Thanks for the comments.

I thought maybe it might be useful maybe as secutiry for a loan or mortgge if I ever needed one But clearly no-one sees any merit in having it for any reasons that mightnt be readily apparent to me.
 
do u not have a mortgage protection policy in force anyway? Usually banks force you to get one if ur taking out a mortgage and therefore if you pop your clogs the mortgages gets paid off....
 
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