Q & A

Ruth has kept her life insurance going for health reasons but now feels ...

Overwhelmed by cost of cover

QI am desperately seeking advice with regard to premiums I am paying for life insurance, which have now reached a ridiculous level that I can no longer afford. But before I contact the insurer to find out what my options are, I would welcome any suggestions you may offer. In 2011 (aged 55), I took out life insurance as my son was only 10 years of age (cover amount $250,000, monthly premium $250). Although this was expensive, I assumed that would be the amount I would pay for the duration with perhaps a small percentage increase. (Yes, naive and not really having a clue what I was doing.) Premiums have increased substantially over the years. The premium rate in March reached $644 a month (cover amount increased to $387,000). In 2015, I was diagnosed with a stage three advanced cancer, which statistically does not have a good prognosis. In 2018, I had a recurrence, but I am currently (touching wood) cancer free. The reason I mention this is because this is the reason I continued with insurance even though I am in the silly situation of using what savings I have to pay the premiums. It has just become overwhelming for me, and I realise I cannot continue. My policy is with Virgin Money and I have only read there is an added indexation on the policy. I’m guessing that is why the cover amount has gone from $250,000 to $387,000 as I did not ask for the amount to be increased over the