Older life insurance policies
There are a variety of older life insurance products. Some policies accumulated a small savings, and these policies at the time, promised significant returns on maturity and have since been significantly devalued by inflation and poor investment returns. (Prior to 1987, Government regulations required Insurance companies to invest funds only in commercial property, mortgages or government bonds. These investments have not performed in the last 15 years).
- Life expectancy rates improving
- Company overheads have reduced considerably as branches are closed and through consolidation and improved technology
- A change from a focus on purchasing a product which provides a level sum assured and premium for life, to one that is initially lower cost and premiums are increased with assessed risk related to age. These policies are ideal for covering major debts such as mortgages and are not required once the debt is cleared. There are therefore less claims for these policies, leading to even lower premiums.
You may have older policies such as Whole of Life, Bonus Payable, PI or Endowment which may longer be appropriate for your needs. The life cover is insignificant, or the investment returns do not match new products which have much better returns and lower costs. We suggest you contact the supplying company directly and obtain a maturity and cash value and assess its value to you for your future needs. Contact us if we can assist.
Some older policies may have a period at which the premiums cease, yet the cover continues. These policies still have a small cash value if surrendered early but may be more useful in providing for funeral expenses.
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