Specified Illness Insurance payout, should I clear Mortgage?

irishpancake

Hi there

Just looking for some general advise regarding the subject.

I know this is a UK board, and I am Irish, but the choices would be the same.

I have been diagnosed with Bowel Cancer, have had the Operation, now on Chemotherapy, so far, so good. Also wearing the old ileostomy bag.

However, prognosis is good :j good :j good :j

So, I had this SI policy, which pays enough to clear our Mortgage, 5 years left on a 10-year term.

The amount outstanding is €44K.

The current rate is 1.95% (ECB +0.95%).

Rate increases are expected shortly in the Euro Area, so not necessarily as good as it looks, but very manageable.

I am 56 y/o and oh similar.

I will be retiring early, after 39 years.

We want to leave this country for sunnier climes, and we are looking at properties in Spain, Costa de Sol.

House should be worth €250k approx, but as property prices have plunged here (Ireland) in the past 18 months, who knows??

However, we should get in excess of €200K, or else we will put plans on hold.

So the question is, at last, does it make sense to clear the Mortgage, save the €750 approx p/month, given our particular circumstances.

I would have a reasonable pension of about €27K p/annum, and o/h will have €10 p/annum.

She has given up her employment to care for me :heartpuls:heartpuls

I will also have an immediate lump sum of €55K and another Pension Lump sum in 5 years of €80K.

Having read over this, I think I know what my own advise to myself would be, but I would welcome comments.

BTW, we have two children, well they are both men now, and independent in their own right, and we have 1 granddaughter, whom we love dearly, but see only infrequently due to distance constraints, etc.

South of Spain would take less time to get to and from with our friends from RyanAir and Aer Lingus, believe me.

Thanks in advance for and comments.

Duplicate Post, sorry

See here