Life and critical life insurance

crowy68

Currently buying a house , went to see the mortgage advisor and agreed to get the life and critical illness insurance, he never said it was a condition of the mortgage. After talking to close family we have decided we dont want it, we only agreed on Friday to it, so are we with in our rights to cancel it tomorrow ?
It is only a small mortgage and decided against it.
Thanks

dragonsoup

Yes you can cancel it but are you absolutely sure you don't need the cover?

moneysavermummy2014

I appreciate it's not answering your question, but having seen someone lose their partner aged 25 in the blink of an eye, just a few short months after buying their first home together, I could not advise you AGAINST that decision enough....

crowy68

Thank you for your replies, fortunately one of our family is quite well off and told us if anything drastic happens they will pay it off for us, the mortgage is very manageable on one of our wages too, so even with out family it wouldnt be a issue.
I do understand as lost my mum at a early age but I think we would be better saving the money, does that make sense ?

R_P_W

crowy68 wrote: »

Thank you for your replies, fortunately one of our family is quite well off and told us if anything drastic happens they will pay it off for us, the mortgage is very manageable on one of our wages too, so even with out family it wouldnt be a issue.
I do understand as lost my mum at a early age but I think we would be better saving the money, does that make sense ?

Seems silly for the sake of a few quid a month for life cover!

What if that family member dies?
Will that family member then own your home?
What if their circumstances change?

crowy68

R_P_W wrote: »

Seems silly for the sake of a few quid a month for life cover!

What if that family member dies?
Will that family member then own your home?
What if their circumstances change?

Its £70 a month we have been quoted, so not really a few quid, but understand what your saying

Nobbie1967

R_P_W wrote: »

Seems silly for the sake of a few quid a month for life cover!

What if that family member dies?
Will that family member then own your home?
What if their circumstances change?

If circumstances change then they can get it then. No point in paying for cover you don't need at the moment. Just double check that it's not a condition of the mortgage to have life insurance. Critical illness won't be a mortgage requirement.

It was a requirement of my mortgage, but I just took it out and then cancelled it after the purchase was completed as I was single and had no need for it. Mortgage company never mentioned it.

goodwithsaving

We have life cover, but not critical illness. Reason being, we have enough equity to sell up and be mortgage free elsewhere.
Do not rely on others' to pay off your mortgage (it's like me relying on any inheritance to pay mine off - but it isn't my money and depends on so many if's and buts). We also don't have any children so any consequences of having to sell and move won't have such a great impact.
Perhaps remove illness cover but retain life cover if you are really sure but this isn't advice and you need to look at this long term security, not as saving a couple of quid here and there.

££sc££

yes you can cancel, but having just received a cheque for £230K are you sure you don't need?

kingstreet

Those taking a mortgage should ask themselves how they would pay the mortgage, their bills and maintain their standard of living if unable to work due to illness or disability, ahead of what happens if they die or get a serious illness.

Income protection cover (the long-term version "permanent health insurance") should be first consideration for most people but because banks and tied agents can't get their heads around it, it's rarely mentioned and life cover to which you can bolt-on critical illness cover has always been an easier sale.

MissUngercover

I'm reading up on this blog because I'm trying to get some sort of income protection cover: I'm single, bought a house, no relatives nearby - so just thinking that if something happens I would like peace of mind (and cover). Would be grateful if someone on here could point me in the right direction. Thanks!