Mortgage protection

mdaz

Hi

Need to ask a question, that may sound silly.

If i took out Decreasing life insurance to cover a mortgage.
Which was taken out the same time.

Should the insurance not have finished automatically when the Mortgage was repaid?

I have just discovered I am still paying Protection insurance for a property I have not lived in for over 12 yrs.
Because it was a small amount each month I never noticed it.

Thanks

antrobus

mdaz wrote: »

...Should the insurance not have finished automatically when the Mortgage was repaid?

No. How would the insurance know that was the case, unless you told them?

Nearlyold

What if you had sold the house and repaid the mortgage because you were seriously ill and downsizing to reduce living costs and expecting to rely on the still in force mortgage life cover to provide at least something for your dependants (the illness having made you uninsurable) - you might be a bit upset to find the insurer had cancelled your life cover. It's up to you to cancel the cover if you no longer need it.

dunstonh

Should the insurance not have finished automatically when the Mortgage was repaid?

Not if the mortgage repaid early.

Life assurance and the mortgage are not linked. The one wouldnt know what the status is with the other. A lot of people keep their life assurance going when they repay the mortgage.

Because it was a small amount each month I never noticed it.

Maybe its time to improve your money management.