life insurance

JCS1

welshpaula wrote: »

so can i just ask i was discharged 2 years ago my joint life policy what would happen if i died now and my partner had to claim ? we just carried on paying the premiums through my bankruptcy

Was the policy in place before discharge? And did you purchase the interest from your OR? If yes and then no, the policy still vests in the OR and any money will go to them

welshpaula

yes policy was taken out 7 years ago we have carried on with it thinking that now i am discharged everything would be fine if we had to claim ! so might as well cancel and take out new policy yes ?? paula x

Dez-Titute

Richard_S wrote: »

Hi Adp,

We were faced with the same problem during our bankruptcy. You can buy the interest back from the O.R but I can't remember how much it worked out at, but more than we were prepared to pay.

There is a life policy that is structured through a trust, and the O.R can't touch it in the event of your demise. Our children were named as the trustees, and we priced the whole thing up, and it was a much cheaper option than buying back our existing policies.

It was a relatively simple process, and once it was in place we cancelled the old policies. Quite surprisingly, it was with NatWest who are not the most bankrupt friendly bank.

Regards

Richard

The cost to buy back the interest is about £50.If you and your OH are in good health you may be able to set up alternative cover although some insurance companies may not accept your app if they know you are an undischarged BR.If you want to buy back your interest give yout OR a call.

Hope that helps

DEz

JCS1

Dez-Titute wrote: »

The cost to buy back the interest is about £50.If you and your OH are in good health you may be able to set up alternative cover although some insurance companies may not accept your app if they know you are an undischarged BR.If you want to buy back your interest give yout OR a call.

Hope that helps

DEz

if you take out a new policy, it really needs to be after discharge otherwise it would vest in your OR.

Dez-Titute

Just to clarify a point,
If you have a policy that is assigned to a lender for mortgage purposes the OR cannot put a charge on this.

This also brings into question policies in trust & policies written as life of another (Where the owner of the policy is not the life assured)
Just wanted to clarify this as all previous advice has assumed own life policicies.

Cheers DEz

welshpaula

just contacted the 2 companies we have life insurance with and they have told me that even though the policies were taken out prior to my bankruptcy the OR would have no interest in the policies now as i am now officially discharged ! the only time the OR would have an interest is if there was a claim whilst undischarged !thought i would just clarify so others know