reviewing insurances when almost MF

snowmensnowmen Forumite
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hello,
we have worked hard reducing our mortgage capital over the last 10 years and now have only £4000 left to go on our mortgage which we should be able to pay off by next feb at the latest (thank goodness!)
Just wondered from people who are in the same situation (or have been) - did you check the insurances you pay and cancel them early. I am talking about payment protection insurance, critical illness cover, life assurance etc.
any thoughts would be helpful!
thanks.

Replies

  • dimbo61dimbo61 Forumite
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    Well I only have life assurance and thats a level term policy which would pay out until I retire so its worth paying the premiums because I like the security and its a cheap policy which I got ( after advice from Martin,s website) at the best price.
    Would cost me a whole lot more now as that much older.
    Do you plan on taking another mortgage in the future ?
    Lots of people reclaiming PPI insurance ( missold)
    CI insurance might only cover for 12/18 months and can be expensive.
    How old are kids now !
  • snowmensnowmen Forumite
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    hi - thanks for the reply

    We dont plan on taking out another mortgage for a while and to enjoy being MF
    We have a 1 year old and plan on another possibly the year after next.
    We currently have life assurance but only took it when we took out the mortgage
    We also have critical illness cover and payment protection insurance which I will probably look at cancelling now because the mortgage is almost paid.
  • dimbo61dimbo61 Forumite
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    A child of one and chance of another.
    Carefull consideration required.
    My kids are grown up and off to, college and uni ( I hope) but how would your OH cope if you were off ill from work for months/ years.
    Please make sure you have the right cover for your needs and not paying too much each year.
    Simple example
    My lender told me I needed life cover ( joint) and gave me a company they use all the time,
    The premium was only £36 a month for next 25 years.
    I went online with Cavendish and got same cover with same company for £24 a month
    Well thats only £12 difference you might say but do the maths
    £12X 12 ( months) X 25 (years)= £3410 over 25 years
    Now if I overpay the mortgage by £12 each month its worth more like £6000
    So dont cancel any existing policies just review the level of cover and make sure you have enough by reading what Martin,s article said.
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