What would happen if I stopped paying my premiums?

• The Insurance Company would contact you.
• If you do not promptly resume payments, your policy will be cancelled.
• Your mortgage could be at risk.

As you’d expect, if you stop paying your premiums, the Insurance Company will write to you in case the missed payment was an oversight or banking error. They will also advise you that the policy will automatically be cancelled if they don’t receive payment within a specified time.

You should be aware that if your policy is cancelled it cannot be re-started. You would need to reapply for cover, and as you’ll be older, the premium would probably be higher.

If your insurance cover was a condition of your mortgage advance then failing to maintain the insurance could put you in breach of your mortgage conditions. You should therefore always speak to your mortgage lender before stopping any premium payments. Otherwise there could be serious implications.

It is worth noting that Life Insurance policies don’t have any investment value. Therefore, if you cancel a policy you have no commitments to make further payments, but you’ll have no cover.

Remember that you can you arrange the Waiver of Premium option to pay your premiums when you are ill or unemployed. Then, if you find yourself in these circumstances just contact your Insurance Company and they will arrange to credit your policy with the premiums.

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

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