Keep or cancel joint life + critical illness policy?

amillionstars

Hello Everyone

I submit for your discussion the following question - what to do about a term life assurance without profits and critical illness policy now there's a change in circumstances

Details:

• For the last eight years I've paid the £40 per month premium for this policy that I took out for my ex-spouse and me
• Our divorce was finalised a short time ago
• I'd like to change the policy so it just covers me
• However, the two quotes I've had so far (based on basic personal details) exceed £60 per month premium! i.e. three times more the individual price and 50% more than the joint price in the existing policy.

Options:
1) Keep existing policy
- should I?
- can I?

2) Cancel existing policy
- Insurance company say they need to ask my ex-spouse. Why do they need their consent?
- They say an alternative is that I cancel the DD and it wouldn't affect my credit rating. Is this true?

Your thoughts and experience welcomed.

Thanks,

dunstonh

1) Keep existing policy
- should I?
- can I?

you can keep it. However, you will need to discuss the assignment of the policy as part of the divorce settlement.

2) Cancel existing policy
- Insurance company say they need to ask my ex-spouse. Why do they need their consent?

Its a joint policy. So any formal instruction has to come from both of you.

- They say an alternative is that I cancel the DD and it wouldn't affect my credit rating. Is this true?

That is correct.