Decreasing life assurance policy

paulapuncher

I was sold decreasing life and critical illness insurance with my interest only mortgage which I believe is wrong. That particular insurance should be sold with repayment mortages. Is there anything I can do, this was 8 years ago and I'm still paying?

dunstonh

paulapuncher wrote: »

I was sold decreasing life and critical illness insurance with my interest only mortgage which I believe is wrong. That particular insurance should be sold with repayment mortages. Is there anything I can do, this was 8 years ago and I'm still paying?

A decreasing term assurance is still right if there was a repayment vehicle with it. i.e. value of repayment vehicle goes up so the need for life assurance goes down.

What was your repayment vehicle?

paulapuncher

I don't think I had one, it was just a straight forward interest only I believe. But I will search through the paper work

dunstonh

How are you going to pay the mortgage when it becomes due? That is what a repayment vehicle does. Old days used endowments, more modern options use ISAs and sometimes pensions (for the tax free cash).