Mortgage Assurance on a rented house.

rai78

I'm currently trying to sort out our fiances and found we're paying mortgage assurance for a house we rent out. We got this when we first took out the mortgage in 2010 have been paying it ever since. My worry is that we're paying for something that isn't really relevant to our situation.
The mortgage assurance pays the total cost of our mortgage should either myself or my husband die or become terminally ill. Paying the mortgage itself isn't an issue as the rent we receive more than covers it (and also easily covers the mortgage assurance) so it isn't a big deal paying it. However I still wonder whether we should carrying on with the mortgage assurance or would we be better getting some form of life insurance or even putting the money to other use?

kingstreet

It's life cover with the terminal illness benefit add-on.

Do you want the mortgage paid off if one of you dies, or gets a terminal illness?

If you do, keep it.

If you don't, cancel it.

Life "insurance" and mortgage "assurance" are probably the same thing, the latter on a decreasing basis as the mortgage balance falls.