Life Home Cover - Mortgage Protection without a mortgage

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ru4n1.

Registered User
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Hi folks,

Quick question please...
Recently, we became lucky enough to be able to pay off our mortgage a good few years early.
We have 'Life home cover' as mortgage protection in place; so I thought naturally to contact the provider to cancel this policy (Irish Life).

However, they informed me that I could actually leave the mortgage protection policy in place (*Despite the mortgage having been paid off now and fully vacated).
i.e. continue the monthly payments for the next couple of years, as an additional cover/protection, should anything happen to my wife or I.
Is this standard/usual?
It just initially seemed illogical to me to have the Mortgage protection in place, given the absence of a mortgage now.

The value/benefit of the (if it was to be needed) Life Home cover is gradually declining over time, until the Life home cover policy ends I know.

We do have a separate "Life Insurance" policy in play also and the total benefit (for both lives) appears much smaller on this Life Insurance rather than on the Life Home cover; but the monthly payments are pretty comparable.
So, my question is - would this be usual to leave a mortgage protection policy in place (without a mortgage)?

Regards,
ru4n1.
 
Nothing unusual at all in it IF the additional cover is of benefit to you. I had two random small policies up until early this year that were taken out to cover top up mortgages at various times even though those particular top ups were long gone the policies were still active. I decided this year it was no longer a benefit to keep them going for various reasons.

The downside of course is the cover is decreasing so a time may come when you consider the benefit not worth the annual outlay but if there is a good amount left on it and the premium is low and you feel additional cover could be a benefit then there is no reason not to keep it running.
 
Thank you Monbretia

Yes, still a good few years left on it which to my mind (*Comparing the annual cost of the Mortgage protection payment versus the Life Insurance policy payment), does actually make the potential benefit far superior on the Mortgage protection. I will likely leave it as is therefore.

Admittedly, I was a little thrown-off by the advisor who suggested leaving it in play. But I have not yet reviewed all the original T&C's to ensure there might be no complications or "gotchas" in doing so.

Thanks again
 
There is no catch :) It might be assigned to a bank but you can get that released, even if was paid out to them they would return it to you when there was no debt against it. Pretty much any sort of life policy can be a 'mortgage protection' in that you could assign any suitable policy for the amount/term to the bank, the main difference is that mortgage protection ones are usually decreasing roughly in line with the mortgage.
 
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