Views wanted on 2 insurance/assurances plans please

MiM

Hope the title sums up the question!

This is something I've never looked closely at, I was just aware that I've got some money going out of my account for two policies of some sort.

Since I took them out I've married and have a new baby. I think it's time to look into this properly but want to know whether I'd lose anything by getting rid of my current policies before thye end naturally?

They are...

1.Standard Life Lifetime Protection Plan critical illness protection. Term 19 years from April 02. Initial sum payable on critical illness, £52,000. Monthly premium £13.30.

2. Nationwide Level Term Assurance. Start June 99, term 15 years, £5.88 monthly to June 2014, £15,000 payable on death before that date. Includes serious illness cover to same amount and payment waiver option.

Both were taken out alongside mortgages that are no longer in force.

I'm 45, owe about £45,000 on mortgage, have some savings and shares and no other debts.

Was thinking of looking for some more comprehensive cover for wife and baby - not sure what yet. But is there any reason I should keep the policies I have?

Very grateful for any comments before I start looking for alternatives. Thank you.

forgotmyname

You need to find out if they have any surrender value or any value if they mature on a set date.

Just been looking into a policy for my FIL, Nobody knows what the policy was for or what it covered.

On the day i was going to contact them for information a letter arrived telling him to stop paying the monthly premium. Seems they had just taken the final payment required and the policy only pays out on death.
No more payments required, Policy still accrues interest and bonuses etc. I asked if there was a surrender value, They said there was but it would be considerably less than the payout if he died.

Maybe its worth the family lumping together to buy the policy off him rather than collect a much lower sum?

MiM

I'm pretty sure they don't have any surrender value but I'll check them. Thanks.

ACG

Dont cancel the policies until you have a new one in place to replace them with.

If you were to cancel and then something were to happen in the time you were without cover you would be very unfortunate.

There are 3 main policies that you should look into - income protection (also known as phi), life and critical illness cover.

Alternatively consult a mortgage or financial advisor.

If i think of anything else ill post it here.

MiM

Thanks ACG, much appreciated.