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Decreasing term life insurance - renegotiation of monthly payment?
MerryGoRoundAvoider
Posts: 28 Forumite
Hi,
We have decreasing term life assurance, with an aim to cover our mortgage entirely if one of us dies or obtains a critical illness.
Now, we took this out 3 years ago via a broker. The broker got a lump sum at the start and also gets a monthly cut.
We've just renegotiated a mortgage deal, and we figure why not renegotiate this too, especially as we owe >10% less due to overpayments (therefore don't need so much insured). In the meantime though, we've had a child with another on the way, so I'm not sure if this would affect premiums?
Has anyone done this before? Should I just shop around, or phone my current insurer? I can remember applying last time, and it was a total faff even via the broker!
Cheers,
We have decreasing term life assurance, with an aim to cover our mortgage entirely if one of us dies or obtains a critical illness.
Now, we took this out 3 years ago via a broker. The broker got a lump sum at the start and also gets a monthly cut.
We've just renegotiated a mortgage deal, and we figure why not renegotiate this too, especially as we owe >10% less due to overpayments (therefore don't need so much insured). In the meantime though, we've had a child with another on the way, so I'm not sure if this would affect premiums?
Has anyone done this before? Should I just shop around, or phone my current insurer? I can remember applying last time, and it was a total faff even via the broker!
Cheers,
Mortgage debt status:
Jun 2012: £ 206,749.00
Jan 2015: £ 175,919.14
Jan 2016: £ 164,248.62 (target was 166,000)
Jan 2017: £ 150,206.48 (target was 150,000)
Jan 2018: £ 137,500
Jun 2012: £ 206,749.00
Jan 2015: £ 175,919.14
Jan 2016: £ 164,248.62 (target was 166,000)
Jan 2017: £ 150,206.48 (target was 150,000)
Jan 2018: £ 137,500
0
Comments
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No harm in having a look round.
Remember you are only looking to reduce by 10% and you are 3 years older so there may not be a huge difference.
Beware of any commission clawback clauses with your current broker.
Having kids won’t affect your premiums but will affect your insurance needs.0 -
The broker got a lump sum at the start and also gets a monthly cut.
Who is the provider as that is not the normal method. It is one or the other.
yesHas anyone done this before?I can remember applying last time, and it was a total faff even via the broker!
Clean health applications are straightforward. If there are or have been health issues, it can take longer. So, what made it difficult last time will probably still occur this time.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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