Life Assurance - Changing Provider Question

davidlizard

We currently have a £100k left of a £150k mortgage with the Nationwide, and when I took the mortgage out 5 years ago opted to take their life assurance (a decreasing term policy for the entire mortgage amount), which is costing me about £30/month. Typing in information in moneysupermarket gives us quotes of around £12/month for what appears to be the same cover.

My questions are:

1. Can I simply cancel my Nationwide policy and take out the cover with an alternative provider?

2. If answer to (1) is yes, are Nationwide likely to hit me with a load of prohibitively expensive charges for doing so?

3. Is it not as simply as the above implies, i.e. is it as simple as changing buildings and contents insurance provider?

All advice most gratefully received.

jasonking

1. Yes you should be able to, just make sure you have the new plan set up and ready to go before you cancel the old one.

2. I have not heard of Nationwide doing this but it is easy to check...just ask them or refer to your original mortgage agreement.

3. Its nearly as simple, life insurance applications often take longer to process but its not hard (if you use a good broker), hence my comments under 1. above

Good luck, you are doing the right thing. Just make sure that you are replacing like for like. You might want to use some of the saving to get more cover for your family...but thats just the adviser in me...you might want to have fun instead!