Life Policy after Mortgage completed

[groupthought]

I have just made my final payment on my mortgage. I used to pay about €27 per month on what I think was a Life Insurance policy which would pay my mortgage in event of death. At least I think that is what the policy was for. However, my bank has been debited for two of these €27 pm payments since I received the deeds etc. Any advice welcome.

 

[Brendan Burgess]

First of all you have to find out what the policy is for.

It is most likely a mortgage protection policy.

While it covers your mortgage in the event of death, it is a separate policy. So if you paid off your mortgage early, the policy will continue unless you cancel it.

So you are now paying €27 a month for life cover.

Check out how much cover you are getting for that.

There are two types of policy - one covers the full amount say €300k. The other is cheaper and the cover reduces over time as the mortgage balance would have reduced.

If you have the latter, then you are probably paying a lot for very little cover.

If you have the former, then you paid a lot in the early years and it's relatively good value now.

But first you have to find out what it is.

Brendan