Being 'bought out' of an insurance policy?

[snapD]

DH gets a pension/insurance policy payment - he is long-term ill

He has received it for 15yrs plus & has 9 yrs to run

They sent us a letter offering a lump sum instead of a monthly payment - which would be lovely except they have offered less than 30% of the amount we would get if we carry on getting it monthly

That is a really bad offer & although DH has me to advise him - I wonder how many other people will see the large amount of money & jump at it, leaving them very badly off in the future

We have said no formally

But after checking on entitledto - we would actually be better off 9with tax credits)

This seems very unfair that the insurance compnay would get off paying a very large amount of money & the welfare state would end up paying

Is the monthly payment level though ? In which case you have to calculate inflation etc etc. Also, what if your husband dies before the end of the monthly payout term ? Would the payments still come to you or is that the policy ended ?

The insurance company actuaries have mortality tables, inflation statistics etc etc and obviously the hope, as you pointed out, that some families will have the bird in the hand philosophy without seeing how much better the bird in the bush might be !!

But still pretty that they offer less than 30% of the residual payments !

There is an annual increase of £67 a year which is a percentage of the original amount

If he dies I lose out - however he has been retired with his condition for 15 yrs on a simple balance of averages he is likely to live for another 9 (I hope)

But if he was working & he died I would lose his income anyway - so no difference really