life insurance premiums

[pomrakuhn]

I have a L.I. policy for £50000 I have paid £111 a month for 13 years but now I am 68 yrears old with very low income and cannot afford to pay any more.
If I stop paying will this be all lost money ?
I did not take up the optional premium cover insurance. Also I have mislaid the policy but as they debit my bank monthly this should not be a problem.

[davidbrt]

It depends on what type of policy it is. If is a term assurance then there will be no value attached to it, however if it is an endowment or whole of life with an investment element in it, then there could be. I would suggest you contact the company who are takign the durect debit and ask them directly. They may also in some cases allow you to reduce the cover and pay a lower premium rather than cease it completely and try to re-apply for new cover.

[R1Geezer]

for £111 per month I'd say it's a qualifying endowment with a fixed term. if you stop paying the premiums they will simply make it "paid up" which means that the current investment value will just sit there and it will pay out what it's worth at maturity. Is it unit linked or with profits? if it's unit linked then just stop paying if you can't afford it but if it's with profits a good lump is tied up in the terminal bonus so pay it to maturity if at all possible. How long to go? If you call the compmany you will get a surrender value, that will be it;s current value less an admin fee.


If it's simple term assurance then it will be worthless but for the premium you are paying I'd say it isn't

[rickoshea]

you can freeze it with some companys but depends on the policy itself also you think are the persons who will benefit from this policy worth the investment??