Life assurance policies-confused

underthematress

Hi,

just wondering if anyone knows what we require.

Just bought a flat with my friend.

We are both single, no dependants. What would happen if one of us were to die?

We are getting wills drawn up that will leave our share of the flat to our respectiv families. SO if we have no assurance do our families take on our debt? or does the remaining person take on the full mortage?

Wondering what policy to get. Its confusing because I would want my share of the investment to go to my family but on the other hand if I die and am not paying the mortgage the flat would be repossed if she couldn't afford it (joint mortgaage)

Cheers

stephenni1971

You need to work out what you want to do more clearly.

Just bought a flat with my friend.

If you and your friend own a property together now, do you both live in it, or is it rented out?

We are getting wills drawn up that will leave our share of the flat to our respectiv families

If you are happy jointly owning a house with your friend, would your mum/dad/brother/sister be happy with a similar arrangement if you died?

SO if we have no assurance do our families take on our debt?

Your family does not take on your debt if you die.

If the worst happens, your assets and liabilities are pooled into your estate, the debts cleared and the remainder distributed according to your wishes in your will.

Worry less about what life policy to get and think a bit more about what you actually want to happen if you die. Your friend may be happy partnering with you ( and vice versa) but if this arrangement changed and you were dealing with another family member with different priorities/aims how would that work?

Also important to know more details about the property. Rented/owner occupied, are you joint tenants, is it a joint mortgage etc.