Mortgage life policy

wavelength_2

Hi,
I have a life policy with Scottish Widows for my mortgage and I'd like to get an understanding of where I stand before contacting them.

The monthly premium is about £10. It is a decreasing cover policy with no payout at the end. It has a 25 year term. Under normal repayments my mortgage would have about 12 years left to run, but I have paid off nearly all of it in several lump sums as a result of maturing investments. The outstanding balance on my mortgage is now less than £5000.

As the balance is so much less than the house's value can I cancel my life policy or maybe reduce its premiums?

I anticipate paying off the entire mortgage with about 10 years to spare. At that point can I cancel the policy or am I committed for the full term?

Thanks for any help you can give.

turbobob

Term assurance policies like this have no investment value. If you don't want/need the cover you can just cancel it at any time. You can't normally alter these policies but I would expect if you were to re-apply for £5000 of decreasing term cover, the premium would probably be under their minimum (depending on your age and health of course). If you are married or have dependants there is likely to be a need for life cover other than to just cover the mortgage though.

wavelength_2

Thanks turbobob. Forewarned is forearmed. I'll call them next and see what they have to say for themselves.