Life insurance conundrum





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  1. #1
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    Default Life insurance conundrum

    Ok, so the short and thick of it, and I know its kinda generic and probably poorly explained, but I'm no insurance salesman...

    Many many years ago I took out a life insurance policy with Momentum, Myriad policy if I recall the correct wording..

    My FA suggested I link increases to inflation as this will secure I stay in the "ballpark" should the need for a claim arise, I did this...

    I am fast approaching a position where I will no longer be able to pay this policy, I simply cannot afford the ever increasing rate any longer..

    I have reduced the inflation based increase to just the "normal" annual increase rate, but the damage is done by virtue of what I am paying..

    I tried an alternate provider (Discovery), I am type 2 diabetic, and not the youngest around, I hope to stay in reasonable condition, but the 'competitive' rate received from Discovery is quite literally double that of Momentum for what I assume is the same product given if you are not God him/herself there is no way in hell that you can understand the policy without severe help, well I cannot anyway....

    One year from now at max I will not be able to afford this cover any longer, the thought of what I have paid cumulatively over the years quite literally sickens me, the thought of walking away from all that even more so..

    I understand its insurance, I understand if the sh1t had hit the fan 10 years back I would have been covered, and that is the risk versus reward thing, but this has not been the case for me, at the moment its just feeding an ever more expensive deep pit. If I stay, I am becoming poorer by the minute with a finite date for being able to contribute, if I leave I loose it all with probably never being able to get what was affordable cover again...

    Am I missing something here, is there a way to reduce contribution with still keeping a semblance of cover, or is it really the end of the road??

    Anyone out there with life insurance covers that have crossed this bridge, or have needed to, any feedback would be appreciated please..!!

    FWIW, my advisor has gone to live at the beach, I will gladly pay for someone to come explain what to do that will benefit me cost wise, if at all possible, so any proper professionals on this forum who live in Gauteng, please shoot away..
    Last edited by Marcochezzi; 2020/01/17 at 02:49 PM.
    Every dog has its day, and those with broken tails have their weak-ends...

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  2. #2
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    Default Re: Life insurance conundrum

    Do you still have younger dependents? Do you have a good amount retirement savings built up?

    EDIT: Do you have group risk cover via an employer?
    Last edited by supersunbird; 2020/01/17 at 02:57 PM.

  3. #3
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    Default Re: Life insurance conundrum

    Contact this guy. Etienne 0848891872

    He can answer your questions. He is a personal friend and our broker.

  4. #4
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    Default Re: Life insurance conundrum

    We'll be happy to assist, and are just down the road from you in Edenvale.

    Give me a shout on 082 342 1909 any time, or let me have your contact number, so that we can chat.
    Last edited by Imvubu; 2020/01/17 at 03:08 PM.
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    Default Re: Life insurance conundrum

    If I remember correctly and I'm not sure if it's applicable to your policy, but isn't there a cut off age where you no longer pay and if you're not dead by that date, the policy pays out?

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  6. #6
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    Default Re: Life insurance conundrum

    From what I understand any increase in cover or material change to a policy triggers new underwriting which is what screws you if you are older or have certain pre-existing conditions.

    That being said you should be able to reduce the level of your cover without new underwriting, some polices do have a minimum level of cover so that may be what is holding you back with the current policy.

  7. #7
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    Default Re: Life insurance conundrum

    Can you request a reduced cover amount for a reduced premium without being underwritten again?

  8. #8
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    Default Re: Life insurance conundrum

    Quote Originally Posted by Marcochezzi View Post
    Ok, so the short and thick of it, and I know its kinda generic and probably poorly explained, but I'm no insurance salesman...

    Many many years ago I took out a life insurance policy with Momentum, Myriad policy if I recall the correct wording..

    My FA suggested I link increases to inflation as this will secure I stay in the "ballpark" should the need for a claim arise, I did this...

    I am fast approaching a position where I will no longer be able to pay this policy, I simply cannot afford the ever increasing rate any longer..

    I have reduced the inflation based increase to just the "normal" annual increase rate, but the damage is done by virtue of what I am paying..

    I tried an alternate provider (Discovery), I am type 2 diabetic, and not the youngest around, I hope to stay in reasonable condition, but the 'competitive' rate received from Discovery is quite literally double that of Momentum for what I assume is the same product given if you are not God him/herself there is no way in hell that you can understand the policy without severe help, well I cannot anyway....

    One year from now at max I will not be able to afford this cover any longer, the thought of what I have paid cumulatively over the years quite literally sickens me, the thought of walking away from all that even more so..

    I understand its insurance, I understand if the sh1t had hit the fan 10 years back I would have been covered, and that is the risk versus reward thing, but this has not been the case for me, at the moment its just feeding an ever more expensive deep pit. If I stay, I am becoming poorer by the minute with a finite date for being able to contribute, if I leave I loose it all with probably never being able to get what was affordable cover again...

    Am I missing something here, is there a way to reduce contribution with still keeping a semblance of cover, or is it really the end of the road??

    Anyone out there with life insurance covers that have crossed this bridge, or have needed to, any feedback would be appreciated please..!!

    FWIW, my advisor has gone to live at the beach, I will gladly pay for someone to come explain what to do that will benefit me cost wise, if at all possible, so any proper professionals on this forum who live in Gauteng, please shoot away..
    This happens when something gets sold to you.
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  9. #9
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    Default Re: Life insurance conundrum

    Request a level premium and level cover quote, one with same benefits, thereafter reduce benefit amounts to suit your financial needs.
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  10. #10
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    Default Re: Life insurance conundrum

    Your on the right track Marco.

    Find a good broker that can advise you and explain to you accordingly. That's the only way. Actually, find two or three.
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  11. #11
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    Default Re: Life insurance conundrum

    Can't you reduce the insured value? I did this a year or 2 ago, which decreased the premium.

    Just a similar story, about 10 years ago I shopped around for a new insurance policy. Got a quote from a broker, but had to go on an overseas trip on short notice, so I informed the broker I would study the proposal and let her know my decision when I am back in SA in a week's time. On the plane I studied the policy and decided not to take it because inflation linked increases would push my premium to R50k per month by the time I'm 55. Just ridiculous.

    Anyway, big was my surprise on arrival in Madagascar to receive a call from Discovery informing me my first premium would be deducted the following day. I was quite shocked and phoned the broker, who told me she had signed on my behalf so long to make sure the policy activates in the current month. I informed her I considered it fraud as I had never indicated to her I would accept the quote. Luckily I managed to get the policy cancelled and Discovery refunded that first month's premium. I've never trusted brokers since.
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  12. #12
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    Default Re: Life insurance conundrum

    Quote Originally Posted by Imvubu View Post
    We'll be happy to assist, and are just down the road from you in Edenvale.

    Give me a shout on 082 342 1909 any time, or let me have your contact number, so that we can chat.
    Thank you Imvubu, will take you up on that!!
    Every dog has its day, and those with broken tails have their weak-ends...

    1976 CJ-7, 400CI + Holley EFI, Tera-Low 3,15:1 twin stick, ARB's front & rear, oil leaks & plenty more....

    All my other petrol burners are boring....

  13. #13
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    Default Re: Life insurance conundrum

    Quote Originally Posted by 4xhilux View Post
    Can't you reduce the insured value? I did this a year or 2 ago, which decreased the premium.

    Just a similar story, about 10 years ago I shopped around for a new insurance policy. Got a quote from a broker, but had to go on an overseas trip on short notice, so I informed the broker I would study the proposal and let her know my decision when I am back in SA in a week's time. On the plane I studied the policy and decided not to take it because inflation linked increases would push my premium to R50k per month by the time I'm 55. Just ridiculous.

    Anyway, big was my surprise on arrival in Madagascar to receive a call from Discovery informing me my first premium would be deducted the following day. I was quite shocked and phoned the broker, who told me she had signed on my behalf so long to make sure the policy activates in the current month. I informed her I considered it fraud as I had never indicated to her I would accept the quote. Luckily I managed to get the policy cancelled and Discovery refunded that first month's premium. I've never trusted brokers since.
    I hope there is something I can do, by the time I get to senior status I will be paying over R100K per month.. absurd, my own fault though...
    Every dog has its day, and those with broken tails have their weak-ends...

    1976 CJ-7, 400CI + Holley EFI, Tera-Low 3,15:1 twin stick, ARB's front & rear, oil leaks & plenty more....

    All my other petrol burners are boring....

  14. #14
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    Default Re: Life insurance conundrum

    Quote Originally Posted by lizardalpha View Post
    Your on the right track Marco.

    Find a good broker that can advise you and explain to you accordingly. That's the only way. Actually, find two or three.
    100%, thanks Pal!
    Every dog has its day, and those with broken tails have their weak-ends...

    1976 CJ-7, 400CI + Holley EFI, Tera-Low 3,15:1 twin stick, ARB's front & rear, oil leaks & plenty more....

    All my other petrol burners are boring....

  15. #15
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    Default Re: Life insurance conundrum

    Quote Originally Posted by Shade View Post
    Request a level premium and level cover quote, one with same benefits, thereafter reduce benefit amounts to suit your financial needs.
    Thank you, next week is going to get interesting!!
    Last edited by Marcochezzi; 2020/01/17 at 06:33 PM.
    Every dog has its day, and those with broken tails have their weak-ends...

    1976 CJ-7, 400CI + Holley EFI, Tera-Low 3,15:1 twin stick, ARB's front & rear, oil leaks & plenty more....

    All my other petrol burners are boring....

  16. #16
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    Default Re: Life insurance conundrum

    Quote Originally Posted by Miems View Post
    If I remember correctly and I'm not sure if it's applicable to your policy, but isn't there a cut off age where you no longer pay and if you're not dead by that date, the policy pays out?
    Seemingly not my policy, but I would love to live to an age that I could test that theory - not the dead part though!!
    Every dog has its day, and those with broken tails have their weak-ends...

    1976 CJ-7, 400CI + Holley EFI, Tera-Low 3,15:1 twin stick, ARB's front & rear, oil leaks & plenty more....

    All my other petrol burners are boring....

  17. #17
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    Default Re: Life insurance conundrum

    Quote Originally Posted by supersunbird View Post
    Do you still have younger dependents? Do you have a good amount retirement savings built up?

    EDIT: Do you have group risk cover via an employer?
    Yes and yes, self employed, no group risk cover..
    Every dog has its day, and those with broken tails have their weak-ends...

    1976 CJ-7, 400CI + Holley EFI, Tera-Low 3,15:1 twin stick, ARB's front & rear, oil leaks & plenty more....

    All my other petrol burners are boring....

  18. #18
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    Default Re: Life insurance conundrum

    I AM NOT A FINANCIAL ADVISER.

    A few years back I discovered that the surrender (or paid up?) value of my life policy was virtually the same as my life cover. (Investment value).
    I decided to change it to an investment product only si it continued to attract growth.
    This could be done with a continuing reduced or fixed premium or even no premium.
    Then you can cash it in when required and use or re-invest elsewhere.
    Hope this helps - just my experience NOT advice.
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  19. #19
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    Default Re: Life insurance conundrum

    Quote Originally Posted by Peter1949 View Post
    I AM NOT A FINANCIAL ADVISER.

    A few years back I discovered that the surrender (or paid up?) value of my life policy was virtually the same as my life cover. (Investment value).
    I decided to change it to an investment product only si it continued to attract growth.
    This could be done with a continuing reduced or fixed premium or even no premium.
    Then you can cash it in when required and use or re-invest elsewhere.
    Hope this helps - just my experience NOT advice.
    Peter thank you, I am expecting to meet in this regard next week, hopefully this can be resolved..
    Every dog has its day, and those with broken tails have their weak-ends...

    1976 CJ-7, 400CI + Holley EFI, Tera-Low 3,15:1 twin stick, ARB's front & rear, oil leaks & plenty more....

    All my other petrol burners are boring....

  20. #20
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    Default Re: Life insurance conundrum

    Being diabetic is you biggest obstacle. Should you apply for cover with another provider you will most likely receive a minimum premium loading of at least 200% on life cover. Disability and Dread in most cases will be declined. If your BMI is over 32 or thereabouts and you suffer with any other chronic condition even your life cover can be declined. Your best option would be to reduce the existing cover with a level premium going forward...

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