My insurance policies

sfjnet

Hi again all,
So many things to think of in preparation for (very likely) bankruptcy and this one has completely passed me by until now.

We have our buildings & contents insurance with Direct Line. I am told that I will need to inform them of my bankruptcy, and that they could withdraw the policy or want more money to keep it going. Does this sound right (I know I should check my policy T&Cs but I can't lay my hands on them just now)? If bankruptcy is a problem for home insurance, does this only apply for the year that I will be undischarged, or will it linger into the future?

Also, I have mortgage protection insurance (Legal & General) and a separate life insurance policy in my name (LV). These are both term insurance with no surrender value - just put in place years ago to cover my family's a***es should I drop dead (perhaps from the stress of this whole process). I can't imagine that they would be called into question, but obviously I don't know very much do I?

Any advice/experiences would be gratefully received.

Thanks again.

sizzler

Hi there,

My life policies were the same no surrende value and OR let me keep them. I was told if I died during MY undischarged BR, They could look at the funds as part of my estate. Once discharged they would have no intrest as long as bought BI in my property.

I have heard different storys about buildings and contents. I Informed mine are they were not intrested. I have just renewd mine and price was similar but they would not ley me pay monthly, so had to pay upfront. Some companys do charge more and some dont like it at all. People try go compare quite a lot here.

Hope this is some help.

good luck sizzler:)

dvs

sizzler wrote: »

Hi there,

My life policies were the same no surrender value and OR let me keep them. I was told if I died during MY undischarged BR, They could look at the funds as part of my estate. Once discharged they would have no intrest as long as bought BI in my property.

I had to buy the beneficial interest in my life policies for £50 each (in December 2009). These were just normal life insurance policies that only pay out if I die. Unless the rules have changed, the life insurance policies will belong to the OR even after you are discharged. I'd check with your OR.

dvs

sfjnet wrote: »

Hi again all,
We have our buildings & contents insurance with Direct Line. I am told that I will need to inform them of my bankruptcy, and that they could withdraw the policy or want more money to keep it going. Does this sound right (I know I should check my policy T&Cs but I can't lay my hands on them just now)? If bankruptcy is a problem for home insurance, does this only apply for the year that I will be undischarged, or will it linger into the future?

Many insurance companies ask at time of policy start date if you or anyone residing with you has ever been declared bankrupt. Depending on the policy provider, they may not take any action (like increase premiums or withdraw cover) until renewal (unless it states otherwise in their terms). The best solution is to contact them and get it in writing as you don't want to be paying for cover that isn't valid.

dojoman

We had 2 term assurances and the OR let us buy back the BI from them at £50 per policy (actually was £25 each per policy) Also I have just changed house insurance using Gocompare.com where they ask you about being BR before any quotes come up. It actually worked out cheaper than my old insurance and I was still allowed to pay by instalments.