Can I claim for non-cancelled life assurance?

KeithG

Hi,
This is my first post - I look forward to replies!

My wife and I had an original mortgage of £68k with Halifax (year: 1997). This debt was wiped out when we moved house and took out a new mortgage of £200k (with Halifax) when we moved house in 2005. For both mortgages we took out Halifax life assurance, but have recently noticed that we have continued paying for both the original £68k life assurance plus the £200k life assurance. As the £68k mortgage was superseded by the £200k, I would have expected the life assurance to have also been superseded. I cannot remember facts around 2005, but I would have expected the Halifax to have stopped the 68K life assurance cover at the time that mortgage debt was cleared? I appreciate I could/should have checked this but hindsight is a wonderful thing. Question is, as it definitely my right to personally cancel the old life assurance or can I claim back any of the unnecessary life assurance payments made towards the old / superseded £68k mortgage?
- I hope I have explained the general situation in an understandable manner?!
Thanks,
Keith

ACG

No you cant.

Its your responsibility.

If you had died halifax or whoever underwrites it would have paid out on both policies.

dunstonh

Can I claim for non-cancelled life assurance?

Yes you can. You send the letter to the person who runs your current account and ask them to refund the money. That will possibly be to yourself or your wife.

I would have expected the life assurance to have also been superseded.

Various ways of doing it depending on health, distribution channel and requirements. Sometimes people just increase the life assurance to cover the difference. Sometimes they start again.

but I would have expected the Halifax to have stopped the 68K life assurance cover at the time that mortgage debt was cleared?

That would be very risky of them. It is not for a lender to cancel a standalone life assurance policy. What if you were still using it? How would they know?

I appreciate I could/should have checked this but hindsight is a wonderful thing.

It is your responsibility or that of your adviser to advise you of what you should do. That said, it is possible that as you used Halifax for both that they may offer a goodwill refund if you can show that you had no financial need for the total sum assured Although most people under insure. So, it could be a problem.

I would take this opportunity to look at your insurances in more detail and use an IFA. If you are in good health, an IFA should be able to wipe the floor with the Halifax on cost. You should also consider it a wake up call as it is rather embarrassing to acknowledge that you have been paying for something for 7 years without realising it. Ideally you should reconcile your banking weekly (often quicker to do it weekly rather than monthly although monthly is fine)