Cancelling Life Insurance on Mortgage

[roger911]

I changed Mortgage provider who also provided a new life insurance policy, I just realized that I am still being charged for the previous life insurance policy that was assigned to the previous mortgage.

I have a few questions

1. Who's responsibility was it to cancel the previous policy, mine or the banks

2. Am I able to apply for a refund of payments

3. If the mortgage was cleared and I died, and I was still paying the premium would they still pay out

Any advice much appreciated.

 

[Monbretia]

It was your responsibility to cancel, bank can't do it for you.

You won't get a refund as the answer to 3 is yes, it would still have paid out even though mortgage was gone.

 

[Danny Boy]

It was your responsibility to cancel, bank can't do it for you.

You won't get a refund as the answer to 3 is yes, it would still have paid out even though mortgage was gone.

100% correct.

The best way to cancel the old policy is to stop the direct debit as it's probably still showing as being assigned to your first mortgage provider & between getting a release of assignment off them & a letter of cancellation to the life company you'll be running around in circles for weeks pulling your hair out while they still take your premiums.

 

[5thwheel]

I changed Mortgage provider who also provided a new life insurance policy,

Is this new policy on the mortgage lenders block policy, if so beawre

If you ever change mortgage provider in the future you will have to take out a new life policy it may cause you extra for cover as you will be older and who knows what anyone's state of health wil be in the future.
Might be better holding on to old policy and assign it to new provider

 

[johnny1234]

Depending on the cost of the Life Assurance, it might be a good way of building up a fund for your beneficiaries. Also, why didn't you transfer the old policy to the new mortgage ? There are test cases where mortgage providers cannot force a borrower ti use their specified Life Assurers.