Mortgage protection Insurance

mwLAWhome

our Mortgage has reduced considerably as we have overpaid as much as possible during our working lives, we are now retired and on fixed incomes. HOWEVER WE ARE STILL PAYING THE SAME AMOUNT OF INSURANCE FOR THE ORIGINAL SUM. Will the company be liable to pay out the higher sum in the event of a claim. 

Sandtree

Ultimately, read your policy... depending on how you bought it then for a normal claim for accident/sickness etc they pay you the agreed sum each month and ultimately it is totally up to you if you use it towards your mortgage or something else. The sum insured won't have changed.

I believe, though others here are more knowledgable on PPI than I, that the one area where there may be a difference is if you become totally disabled and never able to return to work or die then some policies will payoff whatever left of the mortgage in which case overpaying will have reduced that benefit just as had it happened 10 years ago that the amount paid would have been more overpaid or not. 

Weighty1

Is this mortgage protection insurance cover in the event of death or suffering a critical illness or in the event of accident, sickness & unemployment?

If it's the former then repaying large swathes of the mortgage will not affect the amount which can be claimed.  If it's the latter, then it shouldn't affect it unless the monthly mortgage payments are now also lower, which I'd expect them to be.