Mortgage payment protection stuff- do I need it?

rachyp

I took out several policies with my mortgage provider (HSBC) when I got my mortgage- this totals up over 100 pounds every month. I know one is a critical illness cover, 2 of them pay the mortgage and remortgage if I ever lose my job/can't work etc, and one for 6 pounds a month I don't even know what it is!
The thing is, I now live in the Middle East so I'm not even sure these policies are valid anymore- does anyone know?
Do I HAVE to pay for these or am I fine to cancel the direct debits and put the extra money towards my credit debts?

I know I have to have buildings insurance as a condition of the mortgage, but the others I am not sure of.
I was a typical first time buyer who just stupidly said yes when the mortgage man in HSBC said he thought I should take this and that policy out.
Thanks to anyone who can help me with this!

opinions4u

Before you cancel anything you need to identify two points about each insurance.

1) What does the policy actually cover?
2) Does it cover you if you live overseas?

Once you've done this, you can then ask the question "do I still need this?".

Key questions to ask yourself along the way are:

- life cover: who picks up the debt if I die?
- critical illness cover: who picks up the debt if I suffer a serious illness?
- redundancy cover: how will I pay if I lose my job? (I suspect this policy will require you to be making national insurance contributions, so may well not cover you).

You are right to review your cover. Get closer to understanding it though, then if you do choose to cancel it you can do so from an informed position.

dunstonh

We dont know your circumstances so dont know what your financial needs are. However, banks are the most expensive distribution channels nowadays. You can end up paying between 25-50% more in premiums compared to an IFA.