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What happens to the life insurance you took out against a mortgage, after you’ve paid the mortgage? Is it now unnecessary, money in the bin and should be cancelled? Can any funds be retrieved, or should it be continued?
I cancelled my life policy when I paid off the mortgage as it was pretty well only there to cover any mortgage debt. At the time, I also had death in service benefits from my employer. Far better paying into your pension.
As above, mine only cover paying off the mortgage, since I didn’t have a mortgage anymore it got cancelled.
If linked to mortgage, gets cancelled, if its a standalone policy - reducing term - then be as well cancelling it to take out another life policy if you dont have death in service type cover from your employer.
Can any funds be retrieved, or should it be continued?
It all depends on the product and you/your needs.
In the event of something horrible happening would your family be able to manage without your wage?
As we age critical illness cover is arguably as important, what does your workplace offer for death-in-service/illness? EDIT repeats SSS
They normally finish at retirement age anyway
then be as well cancelling it to take out another life policy if you dont have death in service type cover from your employer.
Not convinced. Surely you'd be better sticking with the old policy as it has lower premiums...
I've been paying £13 pcm for cover for the last 15 years. The premium is averaged over the full 25 year term. Why would I bin it just as it it starting to tip in my favour..
For what they cost we've left ours running (mortgage paid off 2 years ago). I look at it like Brucie Bonus to the other half should one of us get hit by a bus.
Even with no mortgage, living on one wage would still be hard. It would be existing, not living.
OK thanks, I'll look into the policy / his and hers work cover specifics first.
The reason for asking is that ours is quite high at £90 per month due to my wife having an. non-curable Immunity illness. So some king of insurance would be good yes, but thats quite an amount if its only based on mortgage policy cover.
The reason for asking is that ours is quite high at £90 per month due to my wife having an. non-curable Immunity illness. So some king of insurance would be good yes, but thats quite an amount if its only based on mortgage policy cover.
I suspect you might be stuck with life insurance. I have MS and no insurer will give me critical illness, income protection, or anything like that. Hopefully someone knows something that I don't... I also have the joy of paying out the arse for life insurance too 🙂
we cancelled ours as it only covered the mortgage