Payed up mortgage

[royboy]

I've managed to redeem my mortgage 12 years early, should I stop the life insurance or continue paying it ?
Thankyou.

[bednobs]

well it's really up to you isn't it? If you were to die, does it provide a nice sum for your benficiaries? Was it level or decreasing cover? Can you cmfortably afford the repayments? There is no imperative to cancel it because it's life insurance that was taken out fir your mortgage, and probably not tied to the mortgage. If you do die before it runs out, and you have stopped paying it it wont pay out, despiste you having paid it for 13 years (i presume) If it's decreasing cover, it might be worth significantly less than you expect. If it's level cover, and you want your beneficiaries to have that money should you die in the next 12 years then keep paying it

[bednobs]

btw well done for paying it off early ... that must feel great!

[Ethel]

See how much you can get either selling it or redeeming it before making any decisions.

[Slingshot]

Please note that some of us are financially well qualified but some of the questions don't really give enough information for an appropriate answer. Perhaps bednobs and ethel are both right but you need to give more info really. Try getting a free appointment with an IFA. It is possible!

[Peter Edward]

Bedknobs is assuming that this is a protection policy i.e. with no investment element. However, could it be an endowment policy intended to pay off the loan at the original expiry date of the mortgage which would open a whole new discussion? Please advise. Peter Edward

[bednobs]

ooooh good point there, i plead the fact it was early when i answered. I of course answred with my own mortgage and mortgage protection in mind, without thinking that someone elses wss probably different. I'm sorry!
however royboy, my advice might still be useable if you have life insurance like mine

[AlMac11]

come on man, insurance is a tax on the poor. If you were really getting a good deal, how can your insurance company afford a 50 storey building in london?

[WendyS]

Do you have any other life insurance cover, such as through a company pension scheme? Many occupational pension schemes offer 1, 2 ,3 or 4 times annual salary cover as life insurance, and if you are in such a scheme and likely to continue to be employed in that job, then possibly paying for additional cover may not be necessary.