Life Cover Needed?

[thejanegirl]

Two years ago I took out a graduate loan with HSBC

 

One condition of me having the loan was taking out life cover, also with HSBC.

 

As my loan was only £5k I took the minimum lever of cover possible which is for a £30K payout, paying £7 pcm.

 

I have just paid the loan off - do I still need the life cover?

 

I don't own my home and have no other debts apart from a £1k credit card and a £1k o/d which I am paying off.

 

I have some sort of cover through work which pays out on my death to my partner.

 

I am not very clued up on these particular financial products and wonder if I should cancel the lifecover now the loan is paid off?

 

PS I don't have any kids, rent a shared house with two friends and my partner. We don't have any joint debts, but our names are on all the household bills. Hope this helps.

[gizmo111]

I personally can't see why you would need life cover atthis stage in your life.

[princess jane]

Yes this is what I think.

 

And my debts are going down and not up, only £2k at present.

 

I might cancel the policy and re-start it if/when I get a mortgage or kiddies.

 

My only concern is there is a history of cancer in the family and my HSBC cover also pays out in the event of critical illness - but does this mean terminal?

 

Any other suggestions?

[LondonPam]

The words critical and terminal are very different in terms of insurance policies. They should be explained in the terms and conditions that you got when you signed up for the insurance. Each company have their own rules. It would be worth checking this out with HSBC. It would also be worth checking if you had to declare the family history when you originally filled the form in. They may have accepted you when today some companies wouldn't.

[princess jane]

I only took the life cover out two years ago, and I remember they did check and run it past the underwriters or medical types and I was passed fine.

 

Was only 25 at the time so considered low risk for cancer etc.