Mortgage Protection Decreasing Term

snoop12

Can anyone help? I have a dispute with my bank over mortgage protection. a) I was convinced I had to have mortgage protection and b) the cost. I took out Decreasing Term assurance seven years ago, the policy was to last eighteen years and cost £85 a month. This was to cover my wife, a smoker who was then 49 and myself a 51 year old non-smoker - no health problems. My mortgage was £80,000. It is hard to compare prices when so much time has passed. Can anyone tell me was/is this expensive or should I drop it.

Thanks for any advice.

dunstonh

a) I was convinced I had to have mortgage protection

Sounds like you do have a financial need for it. So, you do need it. However, if you mean you thought the bank meant you have to have it with them, then what is your evidence to support that accusation?

b) the cost. I took out Decreasing Term assurance seven years ago, the policy was to last eighteen years and cost £85 a month.

cost is not something you can complain about.

This was to cover my wife, a smoker who was then 49 and myself a 51 year old non-smoker - no health problems.

So, this verifies you had a financial need and it was common sense to take it out.

Can anyone tell me was/is this expensive or should I drop it.

It is expensive. However, you bought from a bank. Banks are up there with the most expensive distribution channels. Even where a third party branded insurance company is used, the bank will retail the product about 40% higher than an IFA.

However, you cannot complain about cost because it is up to any retailer how much they price their products for.

snoop12

Sorry I didn't write that very clearly. I meant I believe the bank to have convinced me to take out mortgage protection. I have letters from the bank reminding me to keep up my Life Insurance.
I have since cancelled it, taken out another policy for myself (my wife doesn't work) costing £20 a month.
Thanks for your advice.

magpiecottage

snoop12 wrote: »

Sorry I didn't write that very clearly. I meant I believe the bank to have convinced me to take out mortgage protection.

That is correct advice.

I have letters from the bank reminding me to keep up my Life Insurance.

That may reflect a condition of the loan or simply be a reminder of its importance

I have since cancelled it, taken out another policy for myself (my wife doesn't work) costing £20 a month.

That may or may not be suitable for you. As DunstonH says, an Independent Financial Adviser will be able to help you choose the right type and amount of cover then search the whole market for it.

roonaldo

Having insurance isnt wrong or illegal to have, it sounds like you have a financial need for it.