Mortgage Protection Insurance

Grimy

Registered User
Messages
22
Hi

I sold a house earlier this year against which I had taken out mortgage protection insurance. I have not yet cancelled this insurance, I was wondering whether I could just maintain it as separate life insurance as I do not currently have any (it is non-amortising / level term) - from other posts on AAM I believe the insurance may be separate to the mortgage ? Is this a sensible thing to even consider ?
 
If its level term cover then its just life cover assigned to the bank. You should be able to get the assignment released and run it as a seperate policy if thats what you wanted.
 
Is this a sensible thing to even consider ?

Do you have a need for life insurance cover? If so, then compare what you're paying for your policy with the cost of a new policy for the same amount. Cost of cover has dropped in recent years so it's possible that a new policy would be cheaper. If your existing policy is cheaper, then keep it.

Ask your old lender for the policy document back and a Deed of Reassignment or letter confirming they have no further interest in it.
 
i agree with ldferguson , costs have dropped of late, get policy information, and look to see what you can get for it, and different types of cover that may be more beneficial to you.
lots of options on the market at the moment, some, depending on circumstances can attract tax relief...
 
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