Mortgage life insurance

Hi,  we have been overpaying our mortgage for a number of years - (currently around £15,000 in overpayments) 

We have a decreasing term life insurance policy (with a different company) designed to pay off the mortgage should one of us die.

My query is - Would the overpayments we have made be included, or be refunded to us,  as they were not part of the original loan amount insured ?


  • HappyHarryHappyHarry Forumite
    1.4K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
    The life assurance is totally separate, and will pay out approximately what the outstanding mortgage would have been if you had made no overpayments.

    e.g. If the outstanding mortgage without overpayments would have been £150,000 and is actually £130,000 due to overpayments, then the life assurance will still pay out £150,000.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
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