"Adaptable life plan/term plan"

My old financial advisor has gone, and the big ins. company give very complicated answers, so I'm asking for a simple explanation of...

I've got an Adaptable Life Plan, and after paying it for 20+ years, Zurich now tell me it's also got a 'cash-in' value. How does this cash-in value work? If I keep the policy up until a few months before it ends, then cash it in, does the value go down sharply in the end period?

Similar, we've got an Adaptable Term Plan on both our lives. Would this too have a cash-in value? Zurich haven't told us about one.

I know I've got to ask them directly eventually, but I want to know the position in layman's terms first!

Thanks.

Allen.
13:04 Fri 25th May 2007
 
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It's a good idea to seek independent financial advice - the first session is usually free. The cash-in value will usually be based on bonuses paid annually and then a large "terminal" bonus paid at the end. In most cases the plan will jump by up to 40% on payment of the terminal bonus. The Adaptable Plan in joint names will probably have a cash in value also, but I assume that's what the adaptability is concerned with. Remember that if you cash these in you lose the life cover attached to them.
Life plans are a good way to protect your investment with insurance but in reality its better to get a mutual fund that invest in term life

http://www.amfi.com/ratings/mutual-fund-compar ison
http://en.wikipedia.org/wiki/Term_life_insuran ce

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