Life Insurance for mortgage

Golisa

Just some advice please - I currently have Term Life Assurance and critical illness cover for which I pay £12.80 a month (fixed) and will pay out fixed amount of £70,600 in the event of death and critical illness. This policy expires April 2027 (25 year term, taken out 11 year ago). I am just about to remortgage (due to personal circumstances) and this policy will no longer cover the term of new mortgage (25 years) the amount however will still (more than) cover mortgage. Due to increasing premiums (and women are no longer allowed to be seen as less risk) should I stick with this current policy then when it expires take out another policy for the final 11 years and, more than likely, less of a lump sum due to repayment mortgage (hopefully dependants will be independant by then!) Thanks MSE'ers

dunstonh

I currently have Term Life Assurance and critical illness cover for which I pay £12.80 a month (fixed) and will pay out fixed amount of £70,600 in the event of death and critical illness.

Are you sure that is critical illness cover and not terminal illness cover? It seems very cheap. Although it could be a budget plan with limited coverage. They used to be common in the past.

Golisa

Hi...yes it includes critical illness (as well as diagnosis of terminal illness) also 'Total Permanent Disablement' cover defined as "unable to independently perform three of more activities of daily living as a result of sickness or accident (permanently)" and to confirm it is a fixed monthly premium until April 2027 which pays out the amount of £70,600 on Death, Terminal illness diagnosis and Critical illness diagnosis. So is that perfectly ok to keep this policy and start another one when it expires for the remainder of my mortgage term (which will be 11 years)?