life insurance and the OR interest in it

DON79

Hi everyone!

my OH got a letter today from our life insurer to say that the have been made aware of my BR and that as a result, the OR is now entitled to my legal right to 50% of any payout. Now this is fine.

My question is - as this is a non profit policy which has not got any cash in value whatsoever - can my OH buy back the 50% from the OR and thus make sure that in the event of something happening, the mortgage would be paid off in full? And would he only have to pay the £1 plus costs for this?

And can he also do this for a separate life and critical illness policy that is in my name only?

I should probably know the answer to this but would like someone to tell me everything is going to be ok. Thanks everyone.

Donna

skylight

It should state 3 options in the letter (mine did!).

Its either a) You pay no more into the insurance and let it lapse (you can then start up a new policy). b) You continue to pay into the insurance and NOT buy "it back", leaving the 50% to the OR, or C) you can buy it back for £50.


Check around insurers now though and see if you are getting a good deal - you don't want to pay £50 for something you can find cheaper elsewhere! But if you bought it years ago, it may be cheaper to stick with it. But check it out first.

DON79

Hi skylight, thanks so much for the reply. I think we will just buy it back from the OR for the £50 because we only took it out about a year ago. And OH, he is getting on a bit now (hee hee!:p ) and I think premiums will go up if we take out a new one! it is 120,000 cover for £21 per month - life only.

I am just having a little panic moment thinking - what happens if something happens before we buy it back! Aagh! But I know it is highly unlikely something will happen.

Thank you!

Dez-Titute

Hi Donna,

Don't discount the first option although the old man is getting on in years if he answers all the right questions you might get cheaper cover & save £50 in the bargain....Give it a try & let us know how you get on...

DEz

DON79

Thanks Dez - he is not old really - just over the wrong side of forty . Will maybe try some online quotes and see what they come back as.

Do you know if they will ask if I am BR? I have a feeling that they might ask.

Thanks

Donna

Dez-Titute

I would just stress that you don't cancel any exisying cover until you have wrtten confirmation of acceptance,this could mean paying 2 premiums in the same month buth certainly cheaper than the £50 charge.....

Dez-Titute

Dez-Titute wrote: »

I would just stress that you don't cancel any exisying cover until you have wrtten confirmation of acceptance,this could mean paying 2 premiums in the same month buth certainly cheaper than the £50 charge.....

Yrs I agree the spellig is attroccious{is that a word}spull chucker !!!!ed so whit do I do

DIz

DON79

The £50 is a one off payment though isn't it? I will definitely have a look for quotes and get acceptance before I cancel anything, with two little ones, cannot really afford to have no cover at all.

Would it matter if we went back with the same company as the current policy is or would they not accept us?

Dez-Titute

So !!!!ed has been Doctored.......will have to think of another explettive

Dez-Titute

Fock If you do not succeed try & try gain

Dez-Titute

As my Parrot says persevere and you will suck seed