We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Term Assurance

Hello all, firstly I apologize if this is a naive question but I'm not very money minded (hence this site is a god send). I took out a mortgage in 2001 and was told at the time that I had to get Term Assurance in case of critical illness. It's costing me almost £250/year but I'm not sure I need it. Is it right that it could be a CONDITION of my mortgage that I have it, or could I cancel it without repercusions? Please help. NB: I actually thought I'd cancelled this (over the phone) some time ago but have just checked my statements and I'm still paying it ;-(

Comments

  • yelf
    yelf Posts: 862 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    you do notneed this cover as part of the mortgage condition. It is very wise to have such cover though.
  • koexelek
    koexelek Posts: 7,847 Forumite
    I'd be loathe to cancel it unless you really cannot afford it.

    I hate paying out for insurances as much as the next person, but am also quite supersticious.
    I dare say if I cancelled my critical illness cover today ( to save money), I'd probably end up being diagnosed with cancer next week :eek:

    I actually know of a lady where the above scenario actually occurred.
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    I agree with the above comments, it is very wise to have this type of cover to offer some financial support should you be diagnosed with one of the critical illnesses covered by the policy, my background is in mortgage collections and these things crop a lot more often than people think.I lost a friend recently to bone cancer she was only 42, makes you stop and think.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.