Decreasing insurance linked to mortgage

samzmum44

I have been checking my bamk statements and kept finding payments to Friends Provident. I knew it was not my Personal Insurance and could not find out why I was paying into this company, Eventually I managed to track down the policy number and it seems that since 2004 I have been paying decreasing life insurance for a mortgage / loan that was taken out in 2004 with my now ex husband, I didn't know I had been paying into this in all this time as I thought it was a house insurance when first taken. My Personal finances have been in turmoil before and after my divorce of which I have been left paying the mortgage since 2009 and have only now managed to get ex husbands name of after having bought him out. I have written to said insurance company to see if there is a get out with them without losing all monies already paid in but they say no and that if I were to stop paying then all would have been lost as it seems it does not come to a finish until 2022! at £35.00 per month it seems an awful lot of money on the chance that I might die, As I already have life and disability cover I am loathe to continue with this policy, Does anyone seem ablt to tell me where I stand as I didn't ven know I had this cover although it has been paid for since 2004

dunstonh

I have written to said insurance company to see if there is a get out with them without losing all monies already paid in but they say no and that if I were to stop paying then all would have been lost as it seems it does not come to a finish until 2022!

It will do what it was set out to do at commencement of the policy. The fact it was set up to 2022 would have matched the mortgage. The insurer has no reason to refund as it was offering its services and would have paid out if needed should you have died.

at £35.00 per month it seems an awful lot of money on the chance that I might die

When you took out the mortgage, being left with a debt of whatever it was would have been more expensive for your husband.

Does anyone seem ablt to tell me where I stand as I didn't ven know I had this cover although it has been paid for since 2004

You have no right to refund and it was not mis-sold. All you can do is either keep it or cancel it.

samzmum44

Thank you for taking the trouble to read my thread. I am not the brightest cookie and I thank you for clearing this up for me. I shall now cancel the policy, as I mentioned I am more than adequatly covered with other Insurers Thank you

dunstonh

If you dont need it then you dont pay for it and should cancel it.

tanith

I have this insurance but now our mortgage is down to a smallish amount that we could actually pay it off (we don't want to) can I just cancel the Decreasing Term Insurance or is it a requirement of the mortgage company? Sensible thing would be phone them I guess..

dunstonh

tanith wrote: »

I have this insurance but now our mortgage is down to a smallish amount that we could actually pay it off (we don't want to) can I just cancel the Decreasing Term Insurance or is it a requirement of the mortgage company? Sensible thing would be phone them I guess..

It hasnt been a requirement for years (except on some business mortgages). It is your choice