I may be moving to australia and renting out my UK property which is mortgaged, do is till require mortgage protection insurance?
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I am only covered for critical illness and death as the advice i took back in 2006 wasnt the best and no accident/sickness/redundancy was taken with policy, (since then i have been made redundant and had a serious illness with major surgery). I have life insurance for £200,000 and will be purchasing rental gurantee insurance so am i just wasting my money as i currently pay £39.66 per month, thank you
kathar26
1 year ago
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
Gosh, a few questions there.
You don't mention whether you have dependants, whether you are fully recovered from your illness and surgery, how much the mortgage is (capital or monthly), or how much the property is (capital and rental), but as a stab;
If you have dependants then the cover is probably a good idea.
If you are at greater risk of a claim, either critical illness or life insurance than when you started the policy (perhaps as a result of your illness) then you may wish to keep the policy as replacing it in the future may be prohibitively expensive.
If you have insufficient other insurance cover, your income in Australia is dependant on health (i.e. a critical illness would be a financial as well as health problem), or some combination of the above then keeping the cover may be your best option.
If you are completely clear on all the above, and £39.66 is a material sum of money, and you can think of no other benefit to the insurance then dumping the cover may be a reasonable option, but think hard as once gone it can often not be reinstated.
Please bear in mind that almost definitely the cover is not specifically tied to the mortgage, so paying off the mortgage is an option (an obligation on death, but an option if you suffer a critical illness), the insurance can serve as a general £200k policy if that is something you require.
Please check whether it will pay out if you move to Australia, as some covers have limitations. Australia should be fine, but worth checking.
Best of luck with your new life.
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You don't mention whether you have dependants, whether you are fully recovered from your illness and surgery, how much the mortgage is (capital or monthly), or how much the property is (capital and rental), but as a stab;
If you have dependants then the cover is probably a good idea.
If you are at greater risk of a claim, either critical illness or life insurance than when you started the policy (perhaps as a result of your illness) then you may wish to keep the policy as replacing it in the future may be prohibitively expensive.
If you have insufficient other insurance cover, your income in Australia is dependant on health (i.e. a critical illness would be a financial as well as health problem), or some combination of the above then keeping the cover may be your best option.
If you are completely clear on all the above, and £39.66 is a material sum of money, and you can think of no other benefit to the insurance then dumping the cover may be a reasonable option, but think hard as once gone it can often not be reinstated.
Please bear in mind that almost definitely the cover is not specifically tied to the mortgage, so paying off the mortgage is an option (an obligation on death, but an option if you suffer a critical illness), the insurance can serve as a general £200k policy if that is something you require.
Please check whether it will pay out if you move to Australia, as some covers have limitations. Australia should be fine, but worth checking.
Best of luck with your new life.