What happens If I stop Paying my Premiums?

Hot Topics

How much will the premium be?
Your premium reflects the level of cover you want and how long you want to be insured for. It also reflects the risk to the Insurance Company that you may make a claim. This risk is conditioned by your age, sex, occupation, health record and life style etc.
Could you end up paying more for insurance than someone else the same age?
Yes you might, because your age is only one of many aspects the insurance company takes into account when determining your premium.
Do I have to pay the Life Insurance Broker a fee?
Absolutely not! ClickLife, our Partners for Life Insurance, purely work on commission.
Is a medical absolutely necessary?
No. Most people do not require a medical. Normally an insurer will only ask for a medical if you have existing health issues that cannot be resolved by a report from your GP or if you have applied for an especially high sum of insurance.
How do you go about making a claim under your policy?
Claims are made directly to the Insurance Company who issued your policy. Details of how to claim will be found within the booklet they provide with your Application form and policy.
Your policy will be automatically cancelled. If this is what you want you need take no action and your insurance cover will cease. You have no commitments to make further payments.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

If you stop paying your premiums your insurer write to you advising you that it has not received your payment. It will do this just in case it is an oversight or a banking error.

Their letter will also tell you that unless they receive the missing payment within a specific period of time, your policy will be automatically cancelled. If this is what you want you need take no action and your insurance cover will cease. You have no commitments to make further payments.

Please be aware that if your policy is cancelled it cannot be re-started. If you want to be insured again you will have to reapply and, being older, the premium will be higher. Furthermore, if your health has deteriorated the premium could be a lot higher and in extreme situations you might not even be able to be insured at any price.

If it is a condition of your mortgage advance that you have insurance cover, then if you do not keep up the insurance, you may be in breach of your mortgage conditions. This could have serious implications. So, before you decide to stop paying your insurance premiums, you should consult your mortgage lender.

Incidentally, if you included the “Waiver of Premium” option on your policy and the reason you have stopped paying the premium is because you are off work through illness, accident or unemployment, then you should contact your insurer. They will then take over paying your premiums until you are back at work.