whole of life verus term+renewable

Yep - How can any adviser guarantee his company will be able to renew life cover at any given future date?! This further means bugger all if the standard rates are so high at that time to make the policy uneconomical.

WOL cover is extremely expensive to set up now, if possible at all!

Hence your proposed term policies may be cheaper in the short term, but not provide the longer term cover the existing ones offer.

Take 'independent' advice!

Marcus

In message , Marcus writes

Easy. Its called a 'renewable' term assurance plan. Thats why its called 'renewable term assurance'. If it wasnt renewable then it would be called 'term assurance'.

Quite right.

Eh? There are loads and loads and loads of WOL life plans available.

true

TRUE!!!

In message , Martin Reed writes

That £10k is, in effect, a prepayment for future premiums and if you elect to keep the renewable cover beyond its initial fixed premium period then the premium will hike up considerably, whereas the WOL plan will be able to draw on that £10k. Ask for a quote to rebase the WOL plan to cover the same sum assured as the new plan as suggested but make sure the plan is quoted on two bases : Standard cover and maximum cover and that both are based on amending the existing plan, not a new one. That way the existing £10k will be available to reduce premiums.

Yes, the salesman (for that is all he is) is looking for a way to make more commission. Go to an IFA.

Err Ok John - on rereading the original post my reply doesn't mean what I intended! What I was trying to convey is that the sales agent would be unable to guarantee today what terms or conditions may be imposed by his company on life assurance policies in the future. My initial reading of the poster's query lead me to believe that irrespective of any health, and or any other considerations, his insurer would accept him on standard terms.

Even with a renewable assurance the insurer does normally reserve the right to alter the conditions of that policy, ergo....yada yada yada

PS not an IFA are you John?!! ;-)

Well, this is what would happen with a renewable policy even if he was in poor health. You pay extra premiums in the first place to protect your insurability.

But having said that, you may be better off with a whole of life policy.

Rob Graham

In message , Marcus writes

I dont now what you mean by 'terms', certainly we have no idea what the premium will be, but everything else will be laid down in the original policy.

Rats - it slipped out................

In article , Marcus writes

That is indeed what has been said to me thus far. Checking of small print will, as always, be done with great care. Always appreciate hints on where to look hardest.

If such a clause exists then I agree that all bets are off!

Independent advice will be sought, I just like to have some idea of the territory I'm disappearing in to :-)

cheers, Martin Reed

In article , john boyle writes

Understand the prepayment point (having spent some to reading the Fool).

Noted. Would you mind explaining standard cover vs maximum cover, please? Or point me at a reference online?

I have no problem per se with the idea of commission (I've been there myself), so long as it is a mutually beneficial arrangement. Everyone's got to make a living or the whole system collapses.

IFA will get sorted out as soon as I get a chance - unless you are offering - see me after class :-)

cheers, Martin Reed

In message , Martin Reed writes

WOL contracts are generally costed so that the premium is fixed for the first 10 years and then reviewed every five years thereafter, although there are variations.

Maximum Cover for a given premium is when the fund into which the premium is invested and from which the mortality charge is deducted, will run out in 10 years time. At the 10 year review the premium will likely have to go up.

Standard Cover is when the premium is much larger and should be sufficient to fund the mortality charge for the duration of your life without the need to increase the premiums.

Hi Giving up Whole of Life plans for term plans is not something to be considered lightly but as to whether tis is a wise course of action, is dubious to say the least as the advice seems to be oriented towards selling you more policies and renewal options discontinue I think after age 75.

It would depend on your needs analysis as to whether this is a wise course of action.

I am a fee based IFA so do not concern myself with just policy sales for income, but I feel there is insufficient information provided to you to justify this advice on the basis of what you put in your question.

It may be that you should consider a different way of getting advice other than through a commission based adviser.

If you need further help let me know

Regards

Ned