Insurance policy

[hardy49]

We should just like to know if this is common practice.
Some fifteen years ago we took out a policy for a pension with life cover of �37,000.
Our premiums were �15 a month.

Last week we received a letter saying that unless we increased our premium to �37 a month,life cover would only be �20,000.

Does this seem fair? Are we to expect,in a few years time,when my husband nears 60,that we will receive another letter saying that unless we increase our premiums again our life cover will drop again ?

[dzug]

Well it's common enough, but not the only way of doing it. You'd have to read the T&C to see what they say. It's a way of keeping the premium lower than it should have been in the early years.

At a total guess, I'd say the premiums are now fixed for another 15 years, not just a few. But ICBW

[WendyS]

Fifteen years ago life insurance was quite expensive because of the AIDS scare and other issues. . Nowadays there is so much competition in the market that if you shopped around you might be able to find straightforward Life cover much cheaper. If you are still both in good health, check around on the internet and see what quotes you come up with. MoneySupermarket.com might be a good place to start.

[hardy49]

Many thanks to you both.