What am I covered for?!

Beanietdc

Hello,

In my continuing efforts to pay more attention to what the heck is going on in my financial life I wrote off to a company that I have 2 insurance policies with to try and find out what they are actually for!

I have just got some paperwork back and I am really none the wiser - I have a bit of blind spot when it comes to life insurance/critical illness cover etc. :rolleyes:

What I know is:

I took out both the policies when I got my mortgage.

The person that sold them to me was crap and I had no idea what he was talking about so just agreed with him :eek: (no danger of that anymore!)

I am sure that they are more expensive than I should be paying and the new DFW me doesn't like that feeling! :mad: :mad:

I have one policy described as "Unit Linked Whole of Life" that I pay £22.94 per month for :eek: :eek: This one says I have death benefit of £50 but income replacement benefit of £209 per month. It also says critical illness benefit of £35,555.

The other one is "Term Assurance" which costs £19.86 per month. This one says that it finishes at the same time as the end of my 25 year mortgage so I think this is the critical illness one that pays my mortgage if I can't. It says critical illness benefit of £40,577 (my mortgage) decreasing year on year and mortgage payment protection of £355 per month (my current monthly mortgage payment)

I hope this makes sense to someone - can you explain it in English please?

Also I would like to know if it costs too much and what the consequences are of changing it - i.e. would I lose money/benefits if anything happened to me.

I have been paying them both for 5 years.

Thanks

Tina