Is there any point in still paying this policy?

cakeordeath_2

I got a £30,000 20yr mortgage with the Halifax 16 yrs ago and got life assurance policy with it, I've been steadily overpaying the mortgage recently and now have less than £2600 left on it to pay.

The life assurance policy costs just over £7 a month, but is it actually worth keeping the policy running or should I just cancel it and maybe put the monthy premium towards the overpayment?

dunstonh

The life assurance policy costs just over £7 a month, but is it actually worth keeping the policy running or should I just cancel it and maybe put the monthy premium towards the overpayment?

When are you going to die?
do you have financial dependents?

cakeordeath_2

I seem to think that the life policy was just set up for the term of the mortgage and will only cover the mortgage which is very small, or is there no such type of policy?

lisyloo

Yes, it's called decreasing term assurance.
The amount paid out decreases over time in line with your expected capital.
If you have been overpaying then a lump sum would be paid out in addition to your mortgage because your capital is lower than it would be on the normal repayment schedule.

Do you have any dependents?
If you are on your own then I would probably stop it personally.
It probably isn't going to cause your family huge stress to pay the interest on this tiny amount whilst the house sells if you died tomorrow.
Of course if your family can't afford to pay for a funeral or the interest in the likely selling timescale then you might want to keep it.