Life Insurance after mortgage

SelfBuild2019

Hi,

My parents have had a life insurance policy with Irish Life for the length of their mortgage. The mortgage is now paid off, so is it worth still paying for one? Their "fund value" is only €1,700, so i don't really see a point, or am i missing something? Their current life cover is €31,500 each. What does this mean essentially?

Atlantic Dawn

The issue now is if they wish to take a new life cover for €31,500 each it might cost more than they are currently paying, especially if they have any health issues. Could be worth keeping it in place when comparing to what a new policy would cost.

Henry Ford III

What age are your parents OP? Do they need life assurance?

The policy is a unit linked whole life one, subject to reviews. This may mean premiums increasing or cover decreasing.

SelfBuild2019

Atlantic Dawn wrote: »

The issue now is if they wish to take a new life cover for €31,500 each it might cost more than they are currently paying, especially if they have any health issues. Could be worth keeping it in place when comparing to what a new policy would cost.

Does this effectively mean that if one of them dies, that €31,500 is paid out or is it the fund value that gets paid out? The premiums go up from next year I believe. One is 71 and the other is 66.

Henry Ford III

SelfBuild2019 wrote: »

Does this effectively mean that if one of them dies, that €31,500 is paid out or is it the fund value that gets paid out? The premiums go up from next year I believe. One is 71 and the other is 66.

It'll be sum assured or fund value, whichever is higher.

Get proper advise.

Policy Review

SelfBuild2019 wrote: »

Hi,

My parents have had a life insurance policy with Irish Life for the length of their mortgage. The mortgage is now paid off, so is it worth still paying for one? Their "fund value" is only €1,700, so i don't really see a point, or am i missing something? Their current life cover is €31,500 each. What does this mean essentially?

Like previously mentioned you need proper advice, a lot of moving parts to these plans, I'm assuming we are talking about a lifesaver or similar model plan. I'm available to chat if you wish and most people simply don't understand how this plans work. My personal opinion of them is quite low, lots of these were miss-sold in the 80's/90's. The info you need to know is essentially the following.



1) Current cost of the benefits on the plan. This may be higher then the monthly premiums and slowly eating away the fund value.


2) Fund the surrender value (fund value) is tied to and performance.


3) Is the plan dual life or joint life first event? Dual life means that is one parent dies the remaining could continue premiums until they passed away and have a second payout. Or is it the latter and one payment is paid then the plan is cancelled leaving the surviving partner up sh*t creek.



4) Also was this plan assigned to a bank?? Seems weird to use such a plan as mortgage protection.

skippy2

Do they need Life Insurance at all
I presume the family is all grown up and can care for themselves.
Can one parent be self sufficient if the other dies.
The mortgage is paid off so nothing to worry about there
Life insurance in my book is there to provide for dependents if you have them so they are not left destitiute.
If this is not the case what do you need it for