Cancel or pay.

Baffledbymoney

My father in law took out a £60k life insurance policy for my wife (his daughter) many years ago. I took overpaying premium when he passed. I reckon over £36,000 paid in in premiums by now. Recently the company increased premium to £180 per month to keep full benefit, with other options either keep lower £100 pm with only £32k cover or cancel. As the letter was delayed over 1 month the lower option was activated. This means I have paid the cover already, but will keep paying £100 pm until her demise. If she lives another 20 years, that’s the full original cover. Should we cut  our losses now and cancel, maybe pay into an ISA or keep paying the insurance company what seems excessive amount for no cover.

QrizB

What is the purpose of the insurance policy? What expense it it intended to cover in the event of your wife's death, and does that expense still exist? If it does still exist, is £32k enough? Was £60k enough, even?

DE_612183

how old is she?

MyRealNameToo

Baffledbymoney said:

My father in law took out a £60k life insurance policy for my wife (his daughter) many years ago. I took overpaying premium when he passed. I reckon over £36,000 paid in in premiums by now. Recently the company increased premium to £180 per month to keep full benefit, with other options either keep lower £100 pm with only £32k cover or cancel. As the letter was delayed over 1 month the lower option was activated. This means I have paid the cover already, but will keep paying £100 pm until her demise. If she lives another 20 years, that’s the full original cover. Should we cut  our losses now and cancel, maybe pay into an ISA or keep paying the insurance company what seems excessive amount for no cover.

What do you actually need the funds for? There's no point paying for life insurance if the need has passed.