Additions to existing policy

jimamberdog_2

I already have an existing life assurance policy, with critical illness, for 100,000. I am taking out a mortgage for 160,000. Do I need a new policy for the full amount and cancel the old one, or can I top up with a policy for 60,000. Also, if I can do the later, will I need critical illness on that 60,000.

Advice gratefully recieved.

dunstonh

Criticial illness terms have been getting worse over the last few years but life cover has been getting cheaper.

Depending on whether your policy is reviewable or guaranteed plus the premium difference between a new one for the total amount or the exisiting one with a new one to cover the difference will decide what is the best course of action.

As for whether you need an additional £60k CI, that depends on if you think you do. Most providers allow a split amount (ie 160k life, 100k CI).