What happens If I stop Paying my Premiums?

Hot Topics

Will your premiums increase?
It depends upon whether you have a “Reviewable” or “Guaranteed” policy.
Is it better to have a Guaranteed or a Reviewable premium?
In the medium to longer term we believe that a Reviewable policy will cost you more than a Guaranteed policy. On the other hand Reviewable policies do have the advantage of a lower premium at the outset and this appeals to many people, especially if budgets are tight.
Will you need a medical?
The answer really depends upon your medical history.
Can you get a quotation now online?
No. ClickLife, our Partner for Life Insurance Quotes , take your information online and then phone you back with details of the best policy they can find. They will also give you help to find the polic that suits your needs.
Can A Claim Be Made If The Policy Is Lost?
Yes. Simply contact the Insurance Company and they’ll send a “Lost Policy Claim Form”.
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.