I took out life insurance for 20 years back in 2007 for 140,000 life cover as I remortgaged my main residence to buy another property. The mortgage was due to expire in August 2027 but have decided to pay off early. My annual life insurance premium ia approx. 1000 euros. I am 68 and my wife is 67 both in good health. I am wondering if I should cancel my premium mext Summer as the mortgage will have been paid off.? I know to buy new cover is very expensive for our ages.
Mortgage paid off - should I cancel mortgage protection policy?
- Thread starter Haille
- Start date
You certainly should not cancel in this case. If you have level term life insurance you're paying 1k but the benefit is still 140k, even once the mortgage is paid off.
Dr Strangelove
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Turn it on its head. If you didn’t have the cover in place would you spend €1k a year on the cover for the next two years?
It depends on the level of payout of course as well as the financial position of you and your spouse.
It depends on the level of payout of course as well as the financial position of you and your spouse.
A 68 year old male has a 1.5% annual mortality rate, in other words, a 1 in 66 chance of dying in the next year.
Their insurance pays out 140k for 1k per annum, a 140 to 1 payout.
From a purely statistical point of view, keeping the insurance is a bet worth taking.
Their insurance pays out 140k for 1k per annum, a 140 to 1 payout.
From a purely statistical point of view, keeping the insurance is a bet worth taking.
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Is that 1.5% not likely to be mostly people in poor health? If one was in good health I suspect there'd be little value in it. I wouldn't pay it, unless maybe if it was a convertible policy.
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