Suspected mis-sold life assurance/critical illness BOI plan to bachelor boy?

gabria

I don’t want this to be a BOI rant, I am satisfied with other services they provide but before I talk about my life assurance purchase experience, I just want to briefly mention another product that I believe was pushed onto me by a bonus-driven sales manager:
At age 24 in 2005, I was smooth-talked by a fast-talking pinstriped fellow into subscribing to an investment savings account (SmartChoice) that made me commit to paying an amount per month, rising slightly every year with inflation, calculated in relation to my own inflated salary. When the recession hit in 2008, there could never be a worse time as I had just started a Masters degree and was earning practically zero for nearly a year and a half. I found it impossible to continue the payments and cashed in the policy early, losing at least E3,000 due to the stockmarket crash . But because the return was still high enough to be a very welcome windfall, I just couldn’t complain and with time I have decided that it is best to just forget the loss and learn from my mistake
So now I come to my grapple with BOIs life assurance:
Before I started my Masters degree in 2008, I had also been smooth-talked by a different sales manager into taking out a life assurance 20-year term plan (LifeCare). What prompted her to push this product, was my expressed interest to take out a mortgage on a Dublin property, but at the time I considered it more than five years away . It is still my desire to make this first-time purchase when I move back to Ireland next year , I should have more than enough to cover deposit for some nice apartments I have earmarked. I was never given time by the manager to study the plan and ask questions, but the thought of standing my ground and vowing to shopping around again never entered my head so I signed up with blind loyalty to another product, requiring me to pay again monthly calculations , calculated in relation to salary. Because the monthly amount despite the inflation rise had until recently seemed inoccuous , I just put this to the back of my mind. Over the years I have been unable to justify convincingly to my family or friends why a single person like me needs to pay into a plan with life assurance, critical illness cover and absence from work benefit all incorporated. I am so bachelor-minded that the thought of never having any family to provide for is something I don’t mind. Therefore I may never have any real dependents to provide for in the event of my premature death or other major adverse event. However, I do feel I owe my parents a lot for financial support of my entire life up to now (and set to continue with generous contribution towards my property deposit) and generous payouts to them , to my brother for their care and to the charity with which they are actively involved is something that I insist would never be “too noble” which is my brothers belief.
Ultimately, though by not standing ground, I was bullied to sign up for BOI Life Assurance. Therefore I have last week emailed BOI Life some probing questions regarding how I stand to benefit from continuing the plan, ie. What are the payouts in all situations and more importantly what adverse events are not covered? Their response is not forthcoming. Without knowing these details yet, does anyone believe that I should stop the madness and get out of this plan straightaway? Don’t be afraid to hit with harsh reality comments , it’s the only way I learn

Jim2007

Well the obvious thing to ask is how would you be covered if you did not have this policy, particularly in the case of some kind of serious incapacity? And more over how are you covered while you are living abroad.

Even if you are single and don't expect to have to provide for anyone soon, the question remains who would look after you if you needed support? Assuming the policy pays out on incapacitation, the money might be needed for:
- home modifications
- looking after you
- time spend recuperating
- special equipment
- modified car perhaps
- cover gaps between what you are entitled to and what you feel you need
- return to Ireland (I guess you would not immediately qualify for benefits here)
and so on

Just because your friends don't see a need for it, does not mean that it is a bad idea.

phormium

Oh Please! You were 'bullied' into taking this out! What next? You should have shopped around, you said it yourself, if you didn't want this type of product then you should have said so. Insurance sales people are good at their job, that's why they are able to make a living on commission, but 'bullied' is taking it a step too far and I'm sure anyone out there who was the subject of real bullying can hardly feel too sympathetic to your plight.

coylemj

Just because you were not married doesn't mean that you shouldn't take out life assurance. You could have been financially supporting an elderly parent, you could have a sibling who isn't earning and needs supporting, there are all sorts of reasons why such a policy might make sense for you.

However, if you are paying term life assurance and you feel you don't need it, just stop paying the premum. As I understand it, term assurance just covers you for a fixed period of time. At the end of the period the policy terminates and that's it, there's no bonus so you lose nothing by simply stopping the premiums.

If you have the mental capacity to achieve a third-level degree and go on to do a post-grad then I'm afraid you don't qualify for a fools' pardon.

gabria

What can I say, back then I was very immature and on a higher salary that made me do all manners of crazy things out of my comfort zone
I think Ive come to my senses now, I always ask questions about my bank services And if Im not happy, I will get out of this plan