A Serious Decision

In have just finally closed my NZ bank accounts, and rid myself of all bill payments except one remaining life insurance. I am now in a quandary about it.

The sum assured is $145,000 and there will be bonuses on top when and if it is cashed in.  It has no surrender value prior to my death, which is why it was not disposed during the breakup. However I can claim it upon confirmation of terminal illness.    When I took it out, the premiums were comparitively little, and the sum assured was quite a lot. It would have covered the mortgage and given the family some substantial cash in hand.

Now of course, I have no mortgage to pay off, nor any family in immediate need of support.

I won’t see the money of course,  unless I am diagnosed with a terminal illness.  In such a case $145 k might be a nice going-out present.  However, the premiums are now around $200 a month and escalating every year I age (Why that  should be I do not know – surely all the years I have paid in must have added up with interest?).

Be that as it may, I am now looking at paying out a substantial sum annually, that if I survive a reasonable time, perhaps might be better invested in my super scheme.

Should I keep the policy or cancel it and write off what I have paid so far, diverting the $200 a month to super?

Or should I just cancel the policy and spend the loot on having a good time?

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About Uisce úr

Though I am old with wandering Through hollow lands and hilly lands, I will find out where she has gone, And kiss her lips and take her hands; And walk among long dappled grass, And pluck till time and times are done, The silver apples of the moon, The golden apples of the sun.
This entry was posted in Autobiography, Life, don't talk to me about life!, quandaries and Dilemmas and tagged , , , , , , , , , , , , , . Bookmark the permalink.

4 Responses to A Serious Decision

  1. Problem solved.
    Email to the bank from me:

    Getting my ex-wife’s signature is problematic.
    Let the policy lapse David. I will put the money into my super fund instead.
    Thanks!
    Alan

    Email from the bank:
    Hi Alan,

    I have closed your account today. I have been in touch with insurance who need your ex wife’s signature before they cancel or change the policy. By closing the account your policy will lapse and also close.

    Regards

    David

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  2. Pilgrim33 says:

    Depends on how significant $200/month is to you.
    Would having that much to spend or save outright make a difference to your everyday life?
    Or would continuing to spend the $200 be insignificant?
    For the $145 it seems a very high premium.
    On the other hand your grandchildren might appreciate having the price of a loaf of bread appear one day.

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  3. Devereau Dinsdale says:

    Hi Alan
    I would agree with Rob. I would close the life insurance down, see what you get for an early surrender of the policy, and move on. I am sure you can do something with the extra $200/month you will find in YOUR pocket rather than the Insurance Company’s pocket. More trips away on your motorbike, do an OE or whatever.
    Sad to hear of your marriage split mate, but the mental wounds should be healing now, as I understand it, it all happened about three years ago, is that correct? Happened to me too about 20 years ago. Since then found a lovely wife. I wish that may happen to you too, if wish you it so.

    Have a great day Alan.
    Cheers
    Dev D

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  4. slowenglish says:

    Hi Alan. I had the same dilemma some years ago with my life insurance policy. I let it lapse. It had served its purpose. Good luck with your decision. Cheers, Rob

    Like

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