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When I post samples and options of figures, most view them as hypothetical and not relatingto their exact situation. I need a brave volunteer who is willing to be honest about what cover they have, what type and how much it costs them. I can then do a real analysis of the figures and help people understand from a "real person" perspective.
All I need is the name of the plan(s) (if known), the amounts covered, the term and type (is cover reducing, level, indexing, convertible, if you’re not sure I can help you work it out) and the monthly premiums. Sexes and smoker status, and age(s) next birthday.
It would be really helpful for people to see an actual real life scenario analysed. So, what decent, kind, brave, helpful mumstowner will step up to the mark and help??? 😀
Dave.
I should have mentioned that you can stay anonimous if you wish and just PM me the details. Come on mumstowners, click those mouses (mice?) and let’s help a few people! 😉
Dave.
You can use my own example if you want Dave, even though it was last year I’m sure it still makes sense. You have our full permission to mention the details and the savings we made! 😀
Thanks Sue, that’s very kind of you! I also got a PM with someone else’s figures so just waiting for them to give tell me whether they wish to be named or not.
Sue’s Story:
Sue and hubby (and ds) had two plans in place. A joint reducing mortgage protection plan with 226,000 life cover remaining over 26 years. For this they were paying 41 per month. They also had a unit linked plan with 200,000 joint life cover and 75,000 accelerated specified illness cover and for this they were paying 129 per month. This second plan was not the guaranteed type and the premium is reviewed every so often which means the life company can increase the premium or reduce cover at premium review time. After reviewing all relevant details, we first calculated what was appropriate for their circumstances. Their mortgage needed to be covered and they also had needs to provide for any financial loss in the event of untimely death or serious illness. We were able to put the exact same level of mortgage protection cover in place for 29.32 per month (saving 11.68 per month). On the family cover side, the existing level of cover if paid out, would have provided what was required for less than 7 years! Affordability must also be considered, so we were able to put in place a guaranteed, dual life convertible term plan for 15 years, increasing the life cover to 250,000, the specified illness cover to 100,000 all for 97.27 per month (saving 31.73 per month).
So the result was an increase in cover, better type of cover (dual convertible, not joint level) and savings of 43.41 per month (520.92 per year!) and the peace of mind that the premiums are guaranteed for the term and they will not be increased or cover reduced.
If they had put off doing a review, they would still be paying extra money for worse cover. It’s that simple.
Any questions about this case, I’d be delighted to answer them.
Dave.
That just about sums it up exactly Dave! Plus, we got 1800 euro surrender value on the old plan. While the savings and better cover is great, just having everything explained properly so we know what we have and what we should have going forward was very eye opening. And you’re right that we always look for reasons and excuses to put off looking at things like this. If it was shopping for an outfit, the time would be happilly spent! 😆
Yeah Sue, the surrender value on a unit linked plan can come in handy at times! A lot of people think that it keeps going up but depending on the premium and level of cover, it reaches a point where it peaks and starts to come down, that’s why the premium reviews on those plans happen, to get you to pay more when the "savings" element is used up! The modern guaranteed type plans are much clearer as you know exactly what you are paying and how much cover you have.
I wonder how many people have been thinking about reviewing their own situation but keep putting it off? Imagine, it’s over a year since we did the talk in the D Hotel 😉
A few people have asked me about "Surrender Values" on certain insurance policies. Unlike the modern guaranteed plans where the premium and cover levels are guaranteed (or increase at a known rate for indexing plans) some plans, because of the way they are set up and calculated, can build up a surrender value. The actual values are not guaranteed and vary depending on the premium paid and the level of cover in place. If you have one of these plans, you can always request a current surrender value but be aware, doing so can force a review that may increase the premium. If you are replacing one of these with a new guaranteed plan then this is not an issue but I would always caution people not to cancel an existing plan until a new plan is in place!
Feel free to ask any questions about this or for any specific figures required, you can PM me.
Dave.
Yvonne’ s Story:
With Yvonne, I just did a simple comparison of premiums of her existing mortgage protection plan, we haven’t met or done a review, just compared premiums. Yvonne and dh are 35 and 38 next birthday, non-smokers and had 200,000 life cover and 50,000 specified illness cover on a reducing basis with 26 years remaining. They are paying 49 euro per month for this plan. A quick comparison and exactly the same type and level of cover can be done for 43.42 per month. It may not sound too big a saving but over the term of the plan it’s a reduction of 1,740.96! Main point is, better in your pocket!
Just like Yvonne did, feel free to PM me with any questions about your own circumstances.
Dave.
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