Mortgage Life Insurance - Mortgage paid off

discovery101

Registered User
Messages
23
My mortgage has been cleared on my property that is currently rented out.

I originally get mortgage life insurance with Life Cover and Specified illness cover when i was paying the mortgage....the plan ends in 2030 while the value of the
cover goes down every year until it ends in 2030.

Should i continue with the current plan or look for something different?

any advice welcome, thank you in advance.
 

odyssey06

Frequent Poster
Messages
1,560
I think you need to consider different factors:
(1) How old are you? The answer differs for a 25yo versus a 55yo.
(2) Would you have difficulty in getting cover? i.e. have you developed any medical conditions since taking out this policy which would make it difficult \ expensive for you to get life cover.
(3) Do you need the policy amount to cover any other debts \ loans \ dependents?
(4) Do you plan on taking out another mortgage? The current policy would be useless for that.
 

discovery101

Registered User
Messages
23
Thank you for your response....
1. I am 45 years old.
2. I am in excellent health.
3. No other loans apart from a small credit card bill....no dependents.
4. No plans at present......not in the foreseeable future.

hope that helps!!
 

NoRegretsCoyote

Frequent Poster
Messages
569
It's up to you, but if you don't have any dependents I don't see why you need a life assurance policy.

Much better use of your funds if you put it toward serious illness cover.
 

Bronte

Frequent Poster
Messages
13,305
I agree about the life insurance aspect. But what about the specific illness cover, that might be important to the OP.
 

Midgee

New Member
Messages
1
New to this Forum, so sorry if jumping in on someone else's query, However similar question. Our Mortgage will be paid in 2 years time. We had a Insurance Policy on the money borrowed, eg if something happened to either of us the mortgage would be paid off. Does anyone know if is is possible to keep paying into to this after the mortgage is paid (as life cover) or does it die when the mortgage is paid?
 

Monbretia

Frequent Poster
Messages
1,607
Depends on who it with and the term of it. Some of these policies seem to be still taken out through a bank and finish when the mortgage does, standalone policies with other companies shouldn't have that issue but again depends on the term of it and whether it is a decreasing or a level policy as to whether or not it is value to keep it on.
 
Top