Should I clear my Mortgage with Specified Illness Insurance payout?

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 age.

I will be retiring early, after 39 years :rolleyes:

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 all help and comments.

Regards

IP

seabright

I would pay it off. As well as the financial factors in the decision, for me I'd also factor in the relief I'd feel at not having a mortgage anymore and the potential freedom that would give me.

Especially with your health situation, would no mortgage create less stress in your life? If yes, I'd pay it off.

irishpancake

seabright wrote: »

Especially with your health situation, would no mortgage create less stress in your life? If yes, I'd pay it off.

Thanks seabright:

Appreciated, as you say, no mortgage would radically decrease stress levels, hopefully the Health situation will improve, but one can never say never.

I think that's a big YES

Thanks again :T :T

Kate_A

I agree that you should pay it off if it makes your life less stressful. KUP on the house move and your new life in the sun - sounds fab!

Wishing you the best if health for the future.

dimbo61

Health insurance is expensive in spain but it can be expensive in eire as well !
You took out the critical insurance to cover for this kind of thing happening so please pay off the mortgage and if you can afford buy/rent ( for six months !) a little place in the sun but keep a base in eire.
Good Luck

sassyblue

Irish, l would pay it off also. l fully agree with seabright, best to get rid of mortgage and know it's gone, otherwise it'll be in the back of your mind.

Good luck with your health and everything you wish to do xxx

irishpancake

Kate_A wrote: »

I agree that you should pay it off if it makes your life less stressful. KUP on the house move and your new life in the sun - sounds fab!

Wishing you the best if health for the future.

Thanks Kate :A

Listen, I just had to Google KUP, and I definitely will check in here with all the latest news.

Cheers

irishpancake

Can I just say a huge Thanks to all who have responded here, so many it's getting hard to individually thank everyone.

It is truely heartening, and thanks also for all the good wishes

:T :T

This is a fantastic community of genuine people, I mean that :happyhear

Kate_A

irishpancake wrote: »

Thanks Kate :A

Listen, I just had to Google KUP, and I definitely will check in here with all the latest news.

Cheers

Ha Ha!!! I used to get confused by all these shortened terms too!