Concerns about life insurance

cadenza82

That's interesting - thank you. I reckon that if the premiums were paid out of the surrender value, it would take about 8 years before there was nothing left, assuming the premiums stayed roughly the same.

Anyway, off the see the IFA now, so will update later!

cadenza82

Well, just got back and the IFA really confirmed what we already suspected. Although as it was only an initial free meeting so he couldn't advise, he said the idea of using the surrender value of the life insurance to pay off the mortgage was definitely the best course of action as the policy we have will only continue to rise (or, as we found, be wiped out within 10 years if we stop paying the premiums).

He has suggested they might like to consider another life insurance policy but there would obviously be less of a need for one once the mortgage is paid off. As we'd already worked out, not paying the life insurance premiums and the mortgage would immediately put them in a position of being £400 a month better off and 100% debt-free.

He didn't really feel there was anything he could do which we hadn't already done and as his minimum charge was £1,000, it wasn't really worth it!