Can you cancel a policy half way through even if the mortgage hasn't been paid off, if you replace it by another policy for the outstanding amount? For example, if I get a policy with a big discount for the first year, at the end of the first year can I cancel it and move to another mortgage protection provider with a better rate?ClubMan said:If you clear the mortgage early then you can simply cancel the policy if you don't want to continue it. Some discount brokers may sell you mortgage protection life assurance policies for next to nothing in the first year as an opening offer. If you can get one of these then you may end up spending little or nothing on mortgage protection life assurance in the first year and then when you clear the mortgage you can ditch the policy if you don't need it.
1. Stop paying the premiums, and any policy will become void. Just pre-agree with your lender that policy A will be replaced by policy B (and that lender's interest will be noted on new policy).Can you cancel a policy half way through even if the mortgage hasn't been paid off, if you replace it by another policy for the outstanding amount? For example, if I get a policy with a big discount for the first year, at the end of the first year can I cancel it and move to another mortgage protection provider with a better rate?
I thought that, as Pexus1976 says above, you generally needed to get the new cover in place before stopping the old policy?DrMoriarty said:1. Stop paying the premiums, and any policy will become void. Just pre-agree with your lender that policy A will be replaced by policy B (and that lender's interest will be noted on new policy).
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