Life Insurance

EnslavedByDebts

So my husband and i had a joint life insurance policy which the OR's have just informed us in May that they are now theirs. They want £50 each for the policy so £100 which has no cash value other than if we die.

Due to me being pregnant and needing all the money we can get at the minute i am trying to see what my options are as i really don't want to pay them when it is worth nothing.

I have emailled my OR over a week ago and no response yet. So my questions are:

1) Can i cancel policy and take out a new one?
2) If i did this would they then take this policy too?
3) Is it harder now that we are bankrupt to get life insurance?
4) Would the premium be more as we only pay £17.58 per month at the moment?

Thanks in advance guys

EBD

Round_The_Bend

EnslavedByDebts wrote: »

So my husband and i had a joint life insurance policy which the OR's have just informed us in May that they are now theirs. They want £50 each for the policy so £100 which has no cash value other than if we die.

Due to me being pregnant and needing all the money we can get at the minute i am trying to see what my options are as i really don't want to pay them when it is worth nothing.

I have emailled my OR over a week ago and no response yet. So my questions are:

1) Can i cancel policy and take out a new one? Yes
2) If i did this would they then take this policy too? No
3) Is it harder now that we are bankrupt to get life insurance? No
4) Would the premium be more as we only pay £17.58 per month at the moment? Difficult to say without knowing your details. Why don't you do a search via this site or Moneysupermarket.com?

Thanks in advance guys

EBD

If you take out a new policy, you will not have to pay anything extra to the OR.

JCS1

If you do take out a new policy, it needs to be after discharge. The OR can have an interest in a policy taken out whilst you are BR.

boltonangel

I was told that the only reason I would need to pay the £50 per person to the OR was to buy the beneficial interest in the policy, otherwise if i was to die whilst being undischarged the OR would take money to repay all my creditors in full, and the rest would go to my family.

Round_The_Bend

JCS1 wrote: »

If you do take out a new policy, it needs to be after discharge. The OR can have an interest in a policy taken out whilst you are BR.

You can take out a new policy pre-discharge, without buying back the beneficial interest, as would be the case in terms of a life assurance policy that existed prior to bankruptcy.

Yes, the OR would likely take an interest in a life assurance policy during the bankruptcy period but as noted, only in the event that the policy holder were to die. I think that the poster was more concerned about having to front £100 for the existing policy.

In my case, I initially elected to purchase the BI for £50 but then when I reviewed my needs, realised that I could purchase a new policy for a longer period that was better suited to my current circumstances and was cheaper. The OR was fine with this, although be aware that it has to be paid for from surplus income and is not included in the SOA that the OR considers.

Hope that this helps.

pink-lint_2

hi me and my OH have a joint life ins. that the OR took and we only had to pay £50 for it back for both NOT each.

it is one policy -joint?

i would ring the OR at least you would get an answer there and then.

pink

philnicandamy

Well....I would imagine a "joint" policy (one with both names in) would be classed as one......mine was a couple of years ago when the OR took interest

EnslavedByDebts

Well i spoke to my financial advisor (yes i do have one!!!!) he said that if i took a new one then it would be same monthly premium so i wouldn't need to pay for the interest.

I am worried now though as someone suggests that the OR will take this one too?

I spoke with another OR at the office and they said although one policy - joint we both had to pay £50 each. I am so confused.

EBD

Round_The_Bend

EnslavedByDebts wrote: »

I am worried now though as someone suggests that the OR will take this one too?
EBD

The only way that the OR might take an interest is if one of you dies during the twelve months of bankruptcy. Even then, the interest would only be for the outstanding debt and not the entire value of the policy, I believe. My OR knows that I cancelled the previous policy and took out the new one, although he did not ask for specific details of the new policy