Decreasing term life assurance

dollparts

I took out a life assurance policy at the same time as my mortgage 6 years ago. I no longer have a mortgage and now need to either change the policy or cancel as it only serves to repay any mortgage outstanding in the event of death.

If possible I would like to change the product to something that would pay out for my daughter should anything happen to me.

Its with L&G, would it be possible to alter the policy or should I cancel this one and look for something more suitable?

Thanks in advance

lisyloo

as it only serves to repay any mortgage outstanding in the event of death

It will pay a lump sum to the amount the mortgage would have been on a repayment schedule.
So you could keep it if you wanted and have a lump sum instead.

If you are thikning you will get no money as there's no mortgage then I think you are wrong.

Generally you'd be better off cancelling as life insurance is not really that flexible so get a new one and cancel OR carry on with the one you have.
Would a decreasing amount be appropriate as your daughter get's older? Perhaps the one you have will suffice.

dollparts

That's interesting. it's due to run until 2030-the year I would have made the final repayment at which point the amount payable would be £1500.

Therefore it decreases as the term goes on, so maybe it is worth changing the policy altogether?