Can you make a life insurance policy "paid up" or freeze it?

[Rouxenator]

I got life insurance 6 years ago when I bought a house. My employer at the time did not have adequate cover so that was the main reason for getting my own.

The current job I have has got excellent cover for disability and death. Is there a way I can freeze the life insurance I got and if/when I need it unfreeze it and continue contributing towards it again? I know it is possible with an RA.

Any advice would be appreciated.

The other reason for doing this now is that the broker is trying to sell me more products and I think it would be kinda cool if I tell him I want less actually.

 

[SirFooK'nG]

Life insurance is not the same as an RA. Money put into the RA is yours used to invest for growth. The Life insurance is purely a risk prevention product. You don't get anything back (on older products), newer ones have some incentives, not to sure if you lose them if you stop contributing for any period of time.

 

[Rouxenator]

That much I understand yes, but it should be possible for me to lower my contribution, thereby lowering my coverage and then at a later stage increase it again if I want to?

 

[supersunbird]

That much I understand yes, but it should be possible for me to lower my contribution, thereby lowering my coverage and then at a later stage increase it again if I want to?

Yes

 

[SirFooK'nG]

That much I understand yes, but it should be possible for me to lower my contribution, thereby lowering my coverage and then at a later stage increase it again if I want to?

Sounds plausible, contact the brokers you used.

 

[rorz0r]

The total life insurance you can have is capped at a multiple of your annual income so you might find your employer has already taken it out to this amount (which most people with houses/dependents/etc do).

 

[biena]

I got life insurance 6 years ago when I bought a house. My employer at the time did not have adequate cover so that was the main reason for getting my own.

The current job I have has got excellent cover for disability and death. Is there a way I can freeze the life insurance I got and if/when I need it unfreeze it and continue contributing towards it again? I know it is possible with an RA.

Any advice would be appreciated.

The other reason for doing this now is that the broker is trying to sell me more products and I think it would be kinda cool if I tell him I want less actually.

Make very sure who the beneficiary of this life insurance policy is that your employer is taking out. It could be that the company will receive the benefit and not who you think.

 

[Rouxenator]

Cool, thanks. I was just worried that there would be other negative side effects apart from lower coverage.

 

[Nerfherder]

That much I understand yes, but it should be possible for me to lower my contribution, thereby lowering my coverage and then at a later stage increase it again if I want to?

No, how it works is that they give you a rate based on the fact that you will be contributing from ages 30 - 80, you pay now and keep a moderate rate later on. If you get life insurance at 50 its going to cost you a bucket load more than if you take out the policy at age 30

 

[Fudzy]

Can you have two life insurance policies?

 

[Rouxenator]

Can you have two life insurance policies?

Now I am wondering about the same thing...

 

[Sinbad]

Can you have two life insurance policies?

Yup.
I have a group life policy through work, with my fiancee as beneficiary, and I have a separate life policy also with her as beneficiary that will settle the outstanding bond on the house.

 

[Fudzy]

Yup.
I have a group life policy through work, with my fiancee as beneficiary, and I have a separate life policy also with her as beneficiary that will settle the outstanding bond on the house.

Ah okay, why doesn't your group life policy cover your house or is it for a lot less?

 

[Sinbad]

Ah okay, why doesn't your group life policy cover your house or is it for a lot less?

The group life covers 4 houses worth It's basically to ensure she doesn't have to worry about working/surviving if something happens to me.
The private life cover isn't strictly necessary now but I had it in place before the group policy came into effect and the premiums are low enough that it doesn't really matter keeping it on.