Mortgage Life Insurance

clairecymru

My husband and I pay £40 a month for decreasing life insurance on our mortgage. This was taken out last year when we bought our house. It was organised by the mortgage company and I believe our policy is with legal and general.

Do we have to stay with legal and general now that we have taken this cover out? Or are we free to change it every year if we wish?

I did a quick check on Aviva's website and they said that they could cover us for £9 a month. Why is it that my payment is so high on a £95,000 mortgage?

I remember a nurse coming to our house to take my husbands blood tests because his dad was in his 30s when he had a heart attack. Is that why our policy is so high. If we went with aviva would they not cover us for everything?

Sorry if I am waffling, its just that life cover baffles me.

dunstonh

Do we have to stay with legal and general now that we have taken this cover out?

You dont. However, if you bought the insurance to provide a fee income to the broker (for giving "free" mortgage advice) then if you cancel in the early years you may become subject to the fee as the insurer will typically claw back the commission in the first four years.

Or are we free to change it every year if we wish?

Life assurance is not something you change around like house insurance or motor. There can be times and reasons for doing it but it is not a renewable policy.

I did a quick check on Aviva's website and they said that they could cover us for £9 a month. Why is it that my payment is so high on a £95,000 mortgage?

you are almost certainly not comparing like for like. Possibly the expensive one has more coverage options, such as critical illness cover, and your current one doesnt.

I remember a nurse coming to our house to take my husbands blood tests because his dad was in his 30s when he had a heart attack. Is that why our policy is so high.

That could be another reason. The price on comparison sites and direct to provider options is for clean health/standard risk. If his premium was rated then that would account for some of the difference.

If we went with aviva would they not cover us for everything?

It would have to go through their underwriting and you would have to wait and see what they say.