To cancel or keep life insurance, that’s the question

[highpeakrider]

So we had a 90k plan for payment on first death to cover the mortgage.

However mortgage is now paid, plan has three years to run at £25 a month.

So cancel and save £900 or keep on the off chance one of us pegs it early and gain £90k for the other person?

Both about 60 and in good health.

[Welshbeef]

Don’t want to be morbid but C19 being around it’s something I’d want to keep going

[red_slr]

Is it a level policy?

Have you shopped around to see what else you could get for £25/mo?

Its its a level policy and cheaper than any other provider AND you dont need that £25 a month then I would probably keep it.

When we paid our mortgage off we cancelled our life insurance. However we had another policy which is cheaper and level plan so we kept that one running.

[mfmman]

I thought about this a while back

I came to the conclusion that my retirement plans for me and my wife depended mostly on my income remaining constant. Should anything happen to me, her being able to maintain the planned standard of living in retirement would need a lump sum injection in lieu of my pension contributions going forwards.

Even though we no longer require life cover to sort out the immediate need it was taken out for (pay the mortgage etc) she be unlikely to be able to earn the kind of money needed for future planning

[PurpleTurtle]

Remaining premiums = 1% of potential payout in next three years, yes?

I'm no Actuary but I guess the question is do you think you have >1% chance of dying in that time?

If it were me I would keep paying, assuming you can afford it.

I've had the wider discussion about this with my missus over Covid (I am/was on the shieding list)

Wife: "Would you be sad if you died of Covid-19?"

Me: "Not really, because ultimately I'd be dead and know nothing about it. However you'd trouser £400k to pay off the house and have a nice lump sum. You'll (hopefully) be sad, but at least you won't be destitute, which would make you a lot more sad!"

Wife: "Now you put it that way ...."

[timberman]

We're in a similar situation,

£100k joint life cover taken out to pay mortgage if one of us passed away, and policy ends when we reach 65

mortgage was paid off years ago, we have zero debt and we both have good sized pension funds so don't really need the money,
but, the way I look at it is,
if we tried to get a £100k joint life policy now at our age it would cost a lot more, so while I hope we never need to claim, considering the ongoing monthly cost it's worth keeping just for the extra peace of mind it gives,

also I have the feeling that if I cancel I'll probably drop dead a week later