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lowermarshhammer 1:57 Sun May 31
Decreasing Life Cover Question
Does the bloke on the Yen desk or anyone sitting near to him know the answer to this one?

I have decreasing life cover up to the end of my mortgage.

When I took the mortgage out it was scheduled to end in 2030 however looks like it will be done and dusted about 8 years early. (one of the benefits of driving a crappy car....)

If I was to kick the bucket before 2030 and the mortgage is fully paid off before I die does a decreasing life policy still cough up or not? or are the readies only forthcoming if the mortgage is outstanding?

Not that I will give a shit because I'd be dead in this scenario but just wondering.

Thanks finance gurus of WHO, I await your pearls of wisdom.

Replies - Newest Posts First (Show In Chronological Order)

Roby 6:23 Wed Jun 3
Re: Decreasing Life Cover Question
My wife is a bit of a worrier so has the income protection on her flat she bought before we met.

Clearly a con. You’re best just to keep back 3-6 mths mortgage payment money in a savings account.

I bought a place in December 2018 and the HSBC kept going on an on about a £10 a month policy where if you die it pays out the remaining balance on the mortgage.

It’s not exactly life insurance but something similar. My work have a death in service grant of 3x my salary anyway so don’t need both.

The mortgage one works that effectively Id be paying in £2.5k which is a tenner a month for 25 years. It’s on a sliding scale so if you die at the end of the 25 years there would be only peanuts left on the mortgage anyway so a worthless payout.

I reckon they are both a load of rubbish.

Gabble_Ratchet 4:22 Wed Jun 3
Re: Decreasing Life Cover Question
Any others think this was Mrs LMH and we will have another condolences post in 2022?

lowermarshhammer 11:49 Mon Jun 1
Re: Decreasing Life Cover Question
Village Troll

VickyPkVillageIdiot 11:29 Mon Jun 1
Re: Decreasing Life Cover Question
Make no mistake lowermarsh, your missus would couple up with the next available westerner.

lowermarshhammer 9:45 Mon Jun 1
Re: Decreasing Life Cover Question
Thanks all, arf @ Spandex, she's always telling me she'd probably go lipstick lezza if I corked it, think my antics have probably put off her finding another bloke in the event.

Joyo 0301, think you are confusing life cover with critical illness / income protection cover. I agree those policies are a con, cancelled them just a very few months after taking out my first mortgage way back when.

hammer205 9:06 Mon Jun 1
Re: Decreasing Life Cover Question
You need to find out if it’s Mothage decreasing term or just life cover decreasing term
If the former the simple answer is No mortgage no cover

JLAP 4:46 Mon Jun 1
Re: Decreasing Life Cover Question
You should be able to reduce your premium, the amount it pays out is up to you, either original mortgage amount or recalculated (which would be a smaller premium).

Spandex Sidney 4:14 Mon Jun 1
Re: Decreasing Life Cover Question
Simple answer is yes, it will pay out up to the end of the term.

But the amount is reducing and it's up to you whether you want to keep it or not. It's probably not very costly so you might as well, If you snuff it then it will give a few quid for your missus to get her tits done to impress the next bloke

terry-h 5:34 Sun May 31
Re: Decreasing Life Cover Question
If it's term assurance,there will be a final date on policy document.
If you don't snuff it by then, it becomes worthless unless you take out another policy under new terms and conditions( much more expensive premiums).

oioi 4:34 Sun May 31
Re: Decreasing Life Cover Question
When I paid off my mortgage years ago they left the account open with £1 balance. I’ve still got a decreasing insurance policy. Don’t know if one relates to the other.

Hugh Jampton 3:20 Sun May 31
Re: Decreasing Life Cover Question
Depends on your policy. I've got one with L&g and called to see if it's worth keeping on as I've paid off the mortgage. They said it's not directly linked to the mortgage and if I snuffed it now would pay out 115K. This will decrease over time and there will come a time when it's not worth the monthly payments but for now it is.

Mike Oxsaw 3:15 Sun May 31
Re: Decreasing Life Cover Question
If you keep your mortgage open - even with just a lady godiva on it, the lending company are obliged to keep your deeds safe & secure. Pay the loan off and that cost/burden becomes yours.

joyo 3:01 Sun May 31
Re: Decreasing Life Cover Question
Waste of money, cancel it... You will probably find it not a condition of mortgage agreement after first year

w4hammer 2:43 Sun May 31
Re: Decreasing Life Cover Question
im no expert ( like anyone is shere) however I think it pays up , its life cover as opposed to mortgage cover

You could of course read the policy ;-)





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