overpayment effect on MDLA

benjo

I'm not sure if this should be posted here or on the insurance board - apologies if I'm in the wrong place but here goes with a question.

I have mortgage decreasing term life assurance, which as the name suggests decreases in value each month in accordance with my 'normal' monthly mortgage payments (repayment mortgage). I took this out on April 09 when I took out the mortgage.

Since day one I have been overpaying a small regular amount each month and also making frequent larger overpayments as and when I can - this doesnt amount to much in the scheme of things but probably stands at around 3k to date.

If I were to die under the proverbial bus tomorrow, my policy would be worth more than my outstanding mortgage -

what happens to the 'unused' money in the insurance policy?

Is the excess money refunded to my next of kin?

Do I have to inform my insurers that the amount outstanding on the mortgage is less than the amount insured/assured?

I cant find anything in the policy itself that refers to this, so many thanks if anyone can shed light on this.