Moving! should i cancel the life insurance?

lauren1983

Hi,
Just a quick question!

Me and ,my partner took out level term life and critical illness cover when we were 21. We are now moving back home for a while.
We were going to cancel all policies ect and start fresh with the new house.

But now we are 24 (health ect still the same) will that make much difference to the prices of a new policy?

Any advice would be great
Thanks
Lauren

dunstonh

you are three years older and life assurance is more expensive than 3 years ago (although not by much). CI has got a little cheaper although a guaranteed premium plan from 3 years ago could be good value and worth keeping.

However, if it is a decreasing term assurance, it is unlikely that the new mortgage you get will not match the sum assured making the old policy insufficient. That said, some providers allow you to amend term and sum assured on house purchase so you would need to see if that option exists or not.

pinkkaz

I need to ask something similar to this.

I am a FTB and am just thinking about getting insurance etc. We are planning on staying in our flat (in London) for a maximum of 7 years and then move out to the sticks. Should I just get life assurance for 7 years and then renew next time we move? (You never know - we may end up renting next time).

Thanks!

dunstonh

I am a FTB and am just thinking about getting insurance etc. We are planning on staying in our flat (in London) for a maximum of 7 years and then move out to the sticks. Should I just get life assurance for 7 years and then renew next time we move? (You never know - we may end up renting next time).

Plans rarely come out as you expect. You should go for the full term just in case. However, you may find that a yearly renewable decreasing term assurance is a good option in your case as rather than a decreasing term assurance. (if you are in your 20s it would be better, 30s could be better. 40s, probably not).