Is my insurance invalid?

YelenaK

I have SELF ASSURANCE Term Personal insurance.
It defines the benifit amount as:
" the amount of benefit paid out in the event of a valid claim will be 60,000 reduced on each cover anniversary date in line with the capital outsatnding on a repayment mortgage or loan being repaid by level monthly instalments of capital and interest over the term of the cover. For this purpose, the loan on the cover start date will be the same as the amount shown above and the interest charges will be at a rate of 10%".
when I took the insurance I did indeed have a mortgage of £60,000.
Now my mortgage is differnt. I am not concerned at the moment with the fact that my new mortgage is not protected, but with the fact that if, for example, i were to make a claim now, they will tell me that there is no loan that "corresponds" to my insurance. Or does the pharse above mean that I don't need to have an actual loan of 60K - my claim would be calculated as if I did have such loan on the insurance starting date?

Thanks a lot in advance for any reply

kingstreet

There is no direct link between the policy and the mortgage.

If you die, the current value of the policy will be paid out, £60,000 less the reductions which would have taken place on a £60,000 capital and interest mortgage in the period between inception and now.

You could have no mortgage at all and still the benefit would be paid.

YelenaK

Kingstreet,

thank you for replying.

Just what I wanted to hear.

Yelena