should i cancel insurance

Nickynoo1

Hi,

I was sold decreasing level term assurance with my mortgage in 2002, but think it may be quite expensive. It was only a top up on other life cover as i'd increased the mortgage so it just covered the increase - £50,000.

It has critical illness included and cost £18 ish per month.

I was thinking of cancelling it and just getting standard life cover which yould cost around £6 per month.

Before i don it i thought i would just check on here to see if i was doing the right thing or about to make a big mistake.

Any thoughts?

Thanks

Nickynoo1

dunstonh

Before i don it i thought i would just check on here to see if i was doing the right thing or about to make a big mistake.

Just dont suffer a critical illness and you will be fine.

Claims rate for CI is only a little worse than life cover (1 in 5 men will die before retirement. 1 in 6 men will suffer a claimable CI event before retirement). So, the risk is up to you.

Nickynoo1

whts the difference between level term assurance and mortgage life assurance?

Nickynoo1

[Deleted User]

level term insurance remains the same for the life of the policy (ie you take out 100thou, at any point in that term that policy will be worth 100thou) and is generally more expensive, a mortgage protection policy decreases inline with the mortgage it covers (providing the rates don't change too much)

Hope this helps
Becca