Cancelling Life Insurance

jamesperrett

Hi, I have a decreasing life insurance policy to cover my mortgage. I am retiring in the near future and will be getting a lump sum which will more than cover the future mortgage payments. As the mortgage interest rate is extremely low I am not going to pay off the mortgage immediately but plan on investing a proportion of the lump sum in the expectation that the growth will more than cover the interest.

My question is - should I now cancel the life insurance policy which would save something like £1100 over the remaining life of the mortgage? I can't really see any reason to keep it going but I'm wondering whether I may have missed something?

dunstonh

My question is - should I now cancel the life insurance policy which would save something like £1100 over the remaining life of the mortgage?

Do you have enough life assurance to meet your needs?
are you medically fit to get replacement cover at decent cost?

jamesperrett

Thanks for the response.

dunstonh wrote: »

Do you have enough life assurance to meet your needs?

I'll be receiving a DB pension which should cover the basics. If I die my wife will and son will receive a slightly reduced pension.

dunstonh wrote: »

are you medically fit to get replacement cover at decent cost?

Have had regular medicals for work and a recent NHS medical for those over 50 which haven't picked anything up - apart from needing reading glasses. I'm not planning on taking out another mortgage or secured lending though.