Life insurance payout

Hi - Not sure if this is the right forum for this.

I was recently diagnosed with Stage 1 Melanoma. I was advised that as I had critical illness cover I could submit a claim, so I did.

The insurance company have accepted the claim and will payout in full. Great news (despite the cancer), but my question is - I'm in a 2 year fixed rate and the mortgage company want to charge me a large redemption fee. I never would have been able to pay off the mortgage without this, to ensure my partner and son have a roof over their heads if I'm no longer around and so wonder under the claim of critical illness, if they can still charge me this?

Anyone have any experience or knowledge in this area before I approach the mortgage company again about it?



  • mbroxismbroxis Forumite
    3 Posts
    Well I spoke to the mortgage company and anyone else who ever finds themselves in this situation, is that the mortgage company will take it into account that its exceptional circumstances and waive all charges.

    Hope you are all healthy and well and never need to worry about this, but its good piece of mind to know that you can leave your family in the best position...

  • McKneffMcKneff Forumite
    38.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Thanks for your update, Im sure it will help others in the same or similar situation.

    Wishing you well in your fight against this disease and hope yur recovery is speedy.

    Good luck.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • edited 22 July 2013 at 7:57PM
    MrsCautiousMrsCautious Forumite
    1.2K Posts
    Debt-free and Proud! I've been Money Tipped!
    edited 22 July 2013 at 7:57PM
    Hi, I was unsure as to whether to reply as I absolutely don't want to alarm you, I lost my husband to melanoma, we had a critical illness payout and didn't pay off our mortgage, but since he died (it is still very raw) I have had life assurance pay out to cover the mortgage -- depending on the interest rate you could stooze the money -- by putting it in higher per cent interest savings accounts than the mortgage has, to earn you more money before the mortgage is due.

    This is dependant on what the interest rate is on your mortgage, ours is only 0.87 and is interest only, so for us, to have the lump sum available and put into accounts paying, for now up to 4.1 per cent, mainly around 3 per cent, for a number of years, has made sense. I think the MSE m'gage overpayment calculator shows if this could be worthwhile depending on individual circumstances.

    My husband had great peace of mind knowing we would be able to pay off our mortgage but circumstances have meant that for now at least, it's not the best option. I just wondered if this could be worth looking into for you too, apologies if I'm wide of the mark.

    Wishing you all the very best, lots of love to you and again I do hope my input doesn't alarm you. X
  • bossymoobossymoo Forumite
    6.9K Posts
    I'm glad you got the right outcome there. I too lost my husband to cancer (a different type to yours) and our mortgage company waived all fees too. They then proceeded to move the money just from one account to another and send several letters to my husband (!) but eventually it did go into the mortgage account. Nonsense I really didn't need at the time.

    But, what a huge weight off your mind!

    Best of luck and hoping your treatment is a success.

    Away with the fairies :beer:
  • mbroxismbroxis Forumite
    3 Posts
    Thanks for all your responses and no not scary to hear it anymore, first thing I did was hit the internet when I was told and that is an excellent way to scare yourself, especially as most of the stories are unfortunately the ones where people are further stages than I.

    For me they caught it early and cut it out, last removal showed the all clear, but now am petrified of my first follow up since my operation in case she says she wants to remove more suspicious ones (I have so many moles!), but I try and move on and live my life to the best I can for the sake of my 2 year old and at the same time pleased that I do have to have regular check ups now, as if it does return hopefully it will be again early so they can just cut it out.

    I'm sorry for those of you that have lost loved ones to this, it seems so many people more than I realised I have this, some are lucky and live of full lives and others not so. Stay strong, smile and enjoy what you have, those who have lost enjoy all your happy memories and go live your life to the full for yourself and your love one you lost (easier said than done I'm sure of it, but like to try and be as positive as possible as every day gets a little tiny bit easier to cope with it though your ups and downs).

    I want to spread the word on this as much as I can, as who would have though an innocent looking mole could turn into such a horrible thing. If in doubt check it out is now my motto!

    Take care and go enjoy life!
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