Life insurance question

[*elizabeths-mum*]

'Beloveds' life insurance policy is due for renewal 'on or around the 24th September' and at nearly $1700 its now out of budget so I rang up to say we dont want to renew it when it comes due. The insurance company (MLC) is happy to cancel it from today but given the renewal date I still want him covered for the period we have paid for just in case he does pop off in the next fortnight or so.

My problem is that the insurance company cant give me a firm date when it expires. I am told it will cease when I give them a date on my cancellation letter. 

Surely they must have set dates like house and every other insurance?

I will probably ring Fair Trading tomorrow to ask but thought I see what the CS brains trust thought. 

[twinkles**stars]

When I cancelled mine, many years ago, we set a date and a payout was sent worked out from that date. AMP

[*crikey*mate*]

were you with AMP when theyb gave out the shares?

[twinkles**stars]

Yes

[*crikey*mate*]

that was pretty cool, eh?

[lyndal1838]

Is it a Whole of Life policy or some other type of Life policy?

With Whole of Life policies you can defer payments and the policy will remain in force until the benefits are used up....the premiums are taken out of the benefits.

You can catch up the payments in the future and keep the policy in force.

[*elizabeths-mum*]

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@twinkles**stars wrote:

When I cancelled mine, many years ago, we set a date and a payout was sent worked out from that date. AMP

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She was quite clear that it is an annual fee and no mention was made of working out dates and payments. I might ring them again tomorrow and see what the next person says. It just seems odd that there isn't a set date for the policy to end. It's always been a pain with the 'on or around xxx date' as it is direct debited. 

[*elizabeths-mum*]

I dont know, Lyndall, I didnt know there were different sorts. We have had it for 12 years, and a few years ago when the annual payment started becoming excessive the only solution they offered was to halve the amount he was insured for thus lowering the payment (but not by half ) 

Thanks twinkles too btw.

[newstart2380]

Life insurance is like funeral insurance, just a way for the insurance companies to make money. How do you think they can afford to put the adds on TV every 5 mins for the varied policies they offer.

Add up what you have spent on the policy and work out if you had put that money in an interest account for the same amount of time how much would you have ?

They are all BS.

[**meep**]

I could do that, newstart, if i could predict how long i will live.  since i cant do that, i am paying for my life insurance knowing that my family will be OK financially.

funeral insurance is different.  you can easily save up for it in a relatively short period of time.  you cant compare the cost of a funeral to the amount of money that will be left to your family after you're gone.