Payment towards LIfe Insurnace towards mortgage

aayush

HI I am paying towards the above as this in case something happens to one of us  the mortgage will cleared but not sure what will happen to the balance as my flat is under a shared owner scheme I not have much left on the mortgage thus was wanting to now if i should  cancel the monthly payment thus not pay toward something  not help me in near future 

Old_Lifer

On death during the policy term   it will pay-out whatever is the sum assured at that time.    The sum assured may be a fixed amount   or it may reduce each year,  roughly in line with the reducing amount outstanding on a repayment mortgage.

The policy proceeds do not have to be used to clear the mortgage, although the lender may perhaps expect this to happen.  The policy may be cancelled by you at any time.     Whether it is  wise to do so is another matter.