Very Confused - Advice Needed

vjbennett

When my wife and I purchased a house in 2005, the solicitor advised we took out Mortgage Life Insurance inc Critical Ilness Cover. This was Decreasing Term Life Insurance in my wifes name only.

We subsequently sold the house in 2010 but unwittingly remained paying into this policy.

My questions are (and please be gentle!!)
1. Is the policy still valid now the mortgage is paid off?
2. Should the policy not have ceased automatically upon completion of the mortgage?
3. Is there grounds for any refund on the monthly premiums paid out?
4. Should we cancel this policy immediately?

I know this looks like an oversight, but all advice greatly appreciated.

ACG

1. Is the policy still valid now the mortgage is paid off? Yes
2. Should the policy not have ceased automatically upon completion of the mortgage? no
3. Is there grounds for any refund on the monthly premiums paid out? no
4. Should we cancel this policy immediately? Your decision.

Just to expand, you set the policy up. If you no longer need the policy you can cancel it, but if you still have a mortgage or someone that would be financially off if you were to die or become critically ill then there is still a need. As to whether the policy is for enough or not is another matter.

It might be worth a chat with a mortgage advisor or financial advisor to review it all for you.

vjbennett

Hi ACG,

Thank you very much for your input, greatly appreciated. We were unsure what to think. I feel the best move would be to look for the most cost effective Life Cover (not Term Decreasing) as a replacement for the Term Decreasing policy.

Once again, thank you.