Can i just cancel my life insurance?

chubsta

I am trying to make as many savings in my monthly outgoings as i can. I have two 'level term assurance' life insurance policies which i took out when i originally got my mortgage and when i moved again, increasing the mortgage. Both policies end in 2026.

I don't feel i need to have any life insurance as my circumstances have changed considerably since the policies were taken out. I am in a job which would pay out far more in 'death benefit' to my partner should i die whilst in the job, and as i am due to retire in 2026 i will be effectively covered by that for the rest of the period i would be paying into the life insurance.

So, hopefully that will cover any questions about the consequences of leaving the policies!

So, basically, can i just stop paying the monthly direct debit and that is it? Unfortunately, over the years, paperwork has been lost and although i have a couple of bits and pieces of the original paperwork it is from Nationwide Life Limited, who transferred the policies over to Legal and General in 2009 and i just can't find anything from them with policy numbers etc. Ideally i would like to contact them to cancel the policies but don't know how!

Also, as the purpose of the policies was to pay the mortgage off should i die, does this mean i have to have life insurance as i still have the mortgage, even though it is considerably less than the amount that would be paid out should i die?

any and all advice appreciated as always!

teddysmum

The best thing to do is give their customer service a call. They will probably know what the terms and conditions of the policy are, whereas people on here don't even know which policy you hold, so can't advise.

chubsta

I guess i will try that, i am sure that as my direct debits are being taken there should be some way to track the policy down!

McKneff

What about if you have to leave the job or made redundant. Do you get any funds returned if you cancel

agrinnall

Use this to find your insurers.

https://www.abi.org.uk/Insurance-and-savings/Tools-and-resources/Tracing-an-insurance-policy

Quentin

You need to check your mortgage ts & cs to see if there was any requirement to hold a life insurance policy (if there was it's possible your lender holds the policy)

If you want to cancel then if you stop the DD the insurer will get in touch!

chubsta

Thanks for the further replies guys, I had a brain-wave that the direct debit reference would be the policy number and after a little research it seems that is the case so at least i have that to quote when i speak to the insurance company tomorrow!
Hopefully having life insurance is not a prerequisite of the mortgage as i would be far happier putting the money saved into the mortgage itself, it is a trivial amount but over the last year or so i have become very careful not to waste money at all so every little i can save and put towards my mortgage is significant to me.

Faith177

Only thing I will add is that when my mum passed away her life insurance paid out pretty quick (within 6 weeks) her death in service from her work took nearly 8 months to pay out.

If it only a nominal amount I would say it might be an idea to keep at least one of them running

Nasqueron

Unless you are guaranteed by contract the job for the next 10 years and there is no chance of the employer going under through some unfortunate circumstance then keeping the other cover isn't a bad idea

chubsta

well, phoned Legal and general, and apart from asking why i wanted to cancel the cover there was no problem, done in a couple of minutes, pretty impressed with them to be honest. Not worried about the lack of cover, the extra money would not really make much of a difference should i die, certainly not to me anyway, and i really did look at it as throwing away money, albeit a small sum, each month.

Cheers for all the advice guys, i guess at least you can say its not likely to be a decision i live to regret!