Can I cancel my Life Assurance?

beecher2

I took out a 25 year life assurance policy 12 years ago. I am now mortgage free and so no longer need it (have no dependents, and a pension which would pay out in the event of my death in service).

The policy was set up by my mortgage adviser at the time - he earns commission on this policy for the whole 25 year term. If I cancel this policy, would I be liable to pay some sort of fee to him?

property.advert

No, if you do not pay, then the policy simply lapses. Remember to cancel your direct debit yourself. Your advisor has already had the vast majority of his fees and now only gets a small trail commission.

Just before you cancel, you might perhaps just want to see how much the same level of cover would cost you today. Go to Cavendish online to get a figure with rebates included.

Firewallrob

Feel free to cancel your cover (if you don't need it).

You won't be charged anything now (worst case is having to give a months notice) :cool:

beecher2

Thanks for that - I'm sure the policy would cost a lot more now as it was only £5/month, but better in my pocket than there's I think, when I have no need for it.

Thrugelmir

beecher2 wrote: »

Thanks for that - I'm sure the policy would cost a lot more now as it was only £5/month, but better in my pocket than there's I think, when I have no need for it.

At such a minmal cost isn't it worth retaining?

The future may change your personal circumstances.

beecher2

Thrugelmir wrote: »

At such a minmal cost isn't it worth retaining?

The future may change your personal circumstances.

I'm not sure it is worthwhile keeping it for the remaining 11 years it has to run. My personal circumstances are unlikely to change, and I certainly won't have any dependents. I've around £700 left to pay into it and genuinely don't see the point now that my mortgage is paid off.

Dan_1976

Sit down and think about it. I would imagine its not in trust and without dependants etc it may just increase your estates IHT liability. May be worth looking in to it in more detail.