What if I pay off my mortgage – can my Life Insurance still run?
Yes, of course! Just keep paying the premiums and you
are covered.
With Life Insurance, you simply continue to pay the premiums
until the end of the term and your cover will continue.
If you have Life Insurance that was originally designed
to cover a mortgage and is no longer needed for that purpose, then you
can regard it as a useful lump sum for the family if you were to die.
Remember to tell the Insurance Company about this change so that, if there
is a claim on the policy, the money will come to your family, and not
to the Mortgage Lender.
If you have Mortgage Life Insurance rather than Life Insurance
you may decide that there is little point in continuing the payments once
your mortgage is paid off. The whole point of this kind of cover is simply
to cover the capital you owe on the mortgage. In the later years, the
policy’s cover will be quite low despite the ongoing monthly premiums.
However, we suggest that, if you are tempted to continue
a mortgage life Insurance policy, first get a quote for a new policy at
your existing level of premium and compare the new sum you can get insured
with the current sum insured on your existing policy. You may find that
a new policy provides better value for money.
Other relevant questions…
What happens if
I don’t pay my premiums?
How do I go about making
a claim?
Is Life Insurance for me?
What else do I need to know about Life Insurance?
How do I get a Life Insurance Quote?
How do I choose the right policy for me?
What if I need cover to be arranged quickly?
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How are premiums calculated?
What if I have to make a claim?
Do I need Mortgage Life Insurance instead?
Should I consider Critical Illness cover?
What other sorts of Insurance should I think about?
How do I make a complaint?
What do I need to know about the law and Life Insurance?
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