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Can I keep my Life Insurance Policy on if I pay my mortgage off early?

Yes, you can.
If it’s Mortgage Life Insurance it may not be worthwhile.

As far as the Insurance Company is concerned, as long as you pay the premiums, you remain insured.

For obvious reasons, you are much more likely to want to keep on a normal Life Insurance Policy than a Mortgage Life Insurance Policy. This is because with a Mortgage Life Insurance Policy, the sum insured is steadily decreasing and towards the end of the policy’s term the sum insured may be very low and hardly worth keeping on.

If you are retaining a policy that previously supported a mortgage, you should inform your Insurance Company that your ex-mortgage lender now has no interest in the policy so that, in the event of a pay-out, the money would go to your family rather than the Insurance Company.

Please note : The information contained within the FAQ section has been written by Mortgage Protected Online

Related questions:

Does my Life Insurance Policy have an investment value?

How do I make a claim?

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In respect of Life, Critical Illness Insurance and Family Income Benefit Insurance, Andromeda Webs Ltd, is an Introducer Appointed Representative of Moneyquest (UK) Ltd. Moneyquest (UK) Ltd is authorised and regulated by the Financial Services Authority for insurance mediation.
In respect of Mortgage Payment Protection Insurance and Home and Contents Insurance, Andromeda Webs Ltd, is an Appointed Representative of Web Publishing House Ltd. Web Publishing House Ltd is authorised and regulated by the Financial Services Authority for insurance mediation.