Sold house - do i cease life cover now ?

Took out a mortgage in 2003 and arranged basic life cover so that if either or both of us (me and wife) were to kick the bucket, then the mortgage loan would be paid.

We have just sold the house yesterday.

It was initially our PPR then became a development property when we purchased a new family home.

Do I just stop the life cover now ?

Is there any benefit or anything I am missing as to why I should keep paying it ?

Thanks.

I presume by "basic" you mean decreasing term? Normally you can keep the policy up as general life cover if you want and it suits your needs. If not then just contact the broker or underwriter to cancel the policy and ongoing payments. Or just stop paying the premiums (e.g. cancel the DD/SO) and it will probably just lapse - but maybe better to contact them first just in case...

Make sure the mortgage is paid off before you cancel, if you only sold house yesterday then I presume it will be a while more before you see money. For the sake of another month or so premium it would never do to pop off before sale goes through.

Tubbs said:

Took Is there any benefit or anything I am missing as to why I should keep paying it ?

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Do you need this cover or do you have a separate life insurance policy in place?

The benefit of this policy is that it may be cheaper compared to taking out a similar policy today because you were younger when this policy started. This is not a reason to keep it, you need to decide whether you need it first.

My gut feeling is that an 8 year old erstwhile mortgage linked decreasing term policy may be of limited use in terms of general life assurance cover but it depends on the specifics of the case - e.g. original amount of cover, outstanding amount of cover, term, premium, what cover the couple have in place, what their needs are etc.

might there be any value in the policy if you cancelled it.

the policy may be holding a value if you encashed it.

i know i cancelled a life policy a couple of years ago,
i contacted the life company and i received a cheque for a small sum.

Are you sure you didn't just receive a refund of any unused premiums paid in advance? If it wasn't that then presumably it was some sort of combined life assurance/insurance and savings/investment policy? As far as I know few if any "basic" (reducing term) mortgage protection life insurance policies have any encashment value.