Cancelling Life Cover?

princess_jane_2

Two years ago I took out a graduate loan with HSBC

One condition of me having the loan was taking out life cover, also with HSBC.

As my loan was only £5k I took the minimum lever of cover possible which is for a £30K payout, paying £7 pcm.

I have just paid the loan off - do I still need the life cover?

I don't own my home and have no other (major) debts apart from a £1k credit card, a £1k o/d which I am paying off.

I also have some sort of cover through work which pays out on my death to my partner.

We rent a shared house together with two others and don't own anything jointly.

I am not very clued up on these particular financial products and wonder if I should cancel the lifecover now the loan is paid off?

I'd rather the £7 was in my pocket - every little helps!

PS No dependents apart from a small cat!

Ystrad_Lad

In a nutshell, No.

Princess_Jane

thanks but could you elaborate as to why it is beneficial?

I thought life insurance was something you needed only if you have a mortgage or other large debts?

It is one area of my finances I don't know much about, never had it until this point.

Ystrad_Lad

Sorry, I answered the question in your 4th sentence.

No, I don't think you need to keep this cover going. You generally only need it if you have dependents or debts which will pass on to your next of kin to pay off.

You don't have much debt and the payout from your employer will probably cover it anyway. So why pay out good money for something you won't benefit from?

Princess_Jane

That's what I thought.

Will have a word with HSBC, I'm sure they will want my £7 topping up their coffers!