Income Protection

[worsy]

I took out a policy about 12 years ago (aged 39) whilst I was contracting to cover my income in the event of a catastrophic event. It has a 12 month deferred period and hence it really only covers an illness which is a long term issue. The cover is £130 a month a covers 5k of income net and was designed to effectively ensure standard of living did not change (incl pension conts).

Fast forward 12 years and my situation has changed.

I'm now employed, which would likely mean a work related issue would be covered (I'm in IT, but based from home with occasional client travel). The kids are both adults now and although still in higher education it won't be long before they are working.
I've had a further 12 years of pension contributions since taking out the policy which means although it is not ultimately where I need it to be it does mean there would be an income in retirement.
We have good equity in the house so could sell and downsize to a suitable property and relinquish any mortgage liabilities, including taking out some additional money if deemed necessary.

Additional considerations:
Policy runs until I am 65 and pays out till able to work or 65.
I'm choked up with life insurance so a terminal illness would be a lottery win for the wife.
The wife will inherit a bungalow at some point so if the worst happened there would be somewhere to live / rental income.

I'm probably talking myself in to a cancellation or reduction in line with an acceptance of the risk. What would you do?

[Somebody]

If it was me I would cancel and divert into additional pension contributions.

Have you checked your work to see if they provide some sort of PHI cover?

[worsy]

Somebody said:

If it was me I would cancel and divert into additional pension contributions.

Have you checked your work to see if they provide some sort of PHI cover?

I work for a corporate. I get 4 X Life plus healthcare. Like many corporates, sick pay is standard but in exceptional circumstances can be flexed.