What happens If I stop Paying my Premiums?

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Will your medical history affect your premium?
Yes, your medical history is a very important factor.
If my premium is “Rated”, what does that mean?
If your premium is “Rated” it means that the insurance company will only agree to insure you if you pay a higher premium than the one they originally quoted. This happens because, following receipt of your Application and any follow-up information they required, the insurance company believes you to represent an above average risk. (In extreme situations they will simply decline to insure you.)
Does your age affect your premium?
Yes, your age is one of the most important aspects that determines your premium. (Other important aspects include the level of cover you want, whether you are male or female, whether you are a smoker, your occupation and health record.)
What causes delays and can delays be reduced?
The most common cause of delay is enquiries about your health.
What happens If I stop Paying my Premiums?
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.
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.