I think I've been giving my money away to the Insurance Company!

Kinkajou

Hello,
I think I've been a bit slow.
I have one of those mortgage term decreasing policies that pay off your mortgage should you die.
I've been living really frugally and I've been making regular overpayments to the mortgage to reduce the term and in turn the amount I owe has gone down too.

I am restricted as to the amount I can overpay, so when I can, I save too.
I should have said something to the Insurance people shouldn't I? Surely I could pay them less yearly as there is less mortgage for them to repay?
Can anyone out there advise me? :eek::o

Quentin

Find out how much a new policy will cost to cover the amount now outstanding. If you started your current policy a long time ago it may be still cheaper to carry on with it rather than cancel it and start a new one. Someone will benefit if a claim has to be made!

It is unlikely you can vary the premium/amounts insured on your current policy.

Kinkajou

Hi Quentin,

Thanks for your advice.
I'll have a look around to see if I could get a better price elsewhere.

I wondered if I could get the existing policy reduced because they send me paperwork every year asking me to renew and that set me thinking.

I'm hoping to pay all the mortgage off in the next 3 years and I'll be able to cancel it then (fingers crossed)

dunstonh

I wondered if I could get the existing policy reduced because they send me paperwork every year asking me to renew and that set me thinking.

Sounds like you have a yearly renewable term assurance rather than a term assurance. Often with YRTs you can get the sum assured reduced but it depends on the company.

Kinkajou

Hi dunstonh,

That's really great advise, I appreciate you taking the time out to post.
I will look into it, I am with the Legal and General.
If I could save a few pounds a month, that'd be great.

Kinkajou