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Life Assurance, premium increase from €45.20 to €154.70 pm

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  • 18-11-2012 2:34am
    #1
    Noirin08
    Registered Users Posts: 7 ✭


    We took out a Laser Life Assurance policy with Hibernian Insurance (now Aviva) in May, 1986, Whole of Life, IR£40,000 first death, IR£30.00 premium per month.

    The policy included a savings element and we withdrew £2,500 in September 1999, leaving a balance Life Assurance of £37,500. In Euro terms, this is €44,695 and with approx. premium of €44.75.

    We've just been informed that the premium will be €154.70 pm (an increase of €109.50 pm, approx. 342%). They said the current premium is not enough to sustain the life assurance. They said they do reviews. I asked why they didn't realise it in the last review when, if they had increased it to say €60 pm, we could afford it.

    I've since realised we received a letter from Aviva in 2003, saying there would be an increase of premium to €45.20 to sustain life assurance but didn't think much of it :-(

    We can't afford €154.70 and this policy is assigned to our mortgage. They said if we wish to remain paying €45.20, they'll give life assurance of €12,333, which isn't enough to cover our mortgage.

    I've asked if there's a conversion option but was told no. I have health problems for years and won't be able to get Life Assurance too easily to cover our mortgage.

    We took out this policy in good faith and under the assumption that we'd have that life cover for life.

    Any advice would be very welcome. Thank you.


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    #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,711 Mod ✭✭✭✭Henry Ford III


    Reviews can be pretty tough. The cash you took out of the savings element of the policy would have a major impact on the current premium increase.

    Best thing to do is to go and talk to a Broker, and propose for simple term cover (mortgage protection or better). If you are offered terms go ahead, assign the new policy and cancel the Lazer one.

    If not take the letter of declinature to your lender,and see what they say.


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    #3
    Noirin08
    Registered Users Posts: 7 ✭Noirin08


    Thanks Henry Forde III

    However, I'm not in good health so don't think I'd be able to get life assurance now, not a problem for my husband, thankfully. I'll contact our mortgage lender. Thank you.


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