Can I cancel outstanding balance insurance?

Yes. Outstanding balance insurance is a type of life insurance and can therefore be cancelled, but you should bear a few points in mind.

Sensible?

Ask yourself whether or not this would be sensible. If you think that you no longer need to have outstanding balance insurance, you may cancel the policy. But what would happen if you or your partner died shortly afterwards? You would no longer be insured, but there would still be borrowing costs and financial worries.

Automatic cancellation

Your outstanding balance insurance can sometimes be cancelled automatically, in particular if you refinance your mortgage loan with another lender. In this case, you would take out a new loan and would be able to choose your outstanding balance insurance.

Goodbye totheadvantages

Be careful about cancelling your outstanding balance insurance for a less expensive policy with another financial institution. If you took out your first outstanding balance insurance and your loan with the same institution, you probably benefited from certain advantages in the form of a better rate for your loan. If you decide to take out outstanding balance insurance with another institution, you might lose some of these advantages.

Reimbursement of thepremium

If you have opted for a single premium, you should also be sure that you are entitled to a reimbursement of the remaining amount of your outstanding balance insurance premium. Otherwise, this will make a huge difference.

Find out more

Your insurance broker is there to help you. Click here to learn what the outstanding balance insurance at NN can do for you.