PPI cancellation

newlywed

I've a question regarding PPI on loans and credit cards.

If my loan and credit cards are all in my sole name, on my death, would anyone else have to pay my debts?

Also if I was unable to work, would they only chase me for this or would they try and take money from my Husband?

We have no joint accounts or mortgage at all.

Thinking of cancelling the PPI on my cards but need to check whether anyone else will then be liable as the main reason I took the PPi out was to save anyone else having to pay my debts.

CLAPTON

in my view is makes sense to have live insurance if you have financial dependents or if it would cause major problem to some else...i.e. joint mortgage or even cost of renting ...but live insurance is usually very cheap and affordable.

PPI when sold with loans and CC is usually very expensive and often doesnot actually pay out anyway....but if you want it, get it seperately from the loans/CC.

in general on your death, your debts need to be paid out of your estate...your OH/parents/children are not responsible for your debts. so in principle your car could be sold to pay your debts off but not your OH car. if there isnt enough money in your estate then the debts just die.
problems may arise if you own a house jointly with OH but in that event i would strongly suggest you have life insurance.

similarly if you are off long term sick and cant pay your debts (and they are in your sole name) then only you can be chased for the debt and not our OH

whatever you decide, dont take PPI out with loans/cc but seek independant companies that provide the cover much cheaper. read the small print for what you are actually covered....often they dont actually pay off the loans but simply the monthly loan repayment for a limited time
sometimes there is a waiting period before any pay out.

newlywed

Thanks for that comprehensive reply - makes this much clearer.

I was always given the impression that the debt would be passed on to next of kin if anything happened to me which is the only reason I took it out!

Any ideas where I would go to find the independent companies? Just any insurance company that does life cover or income cover?

Thanks.

CLAPTON

for life insurance its worth reading Martins comments
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1062326514,64086,

i've never bought PPI as i dont think its worth it but try putting
asu (accident sickness and unemployment insurance ) into a search engine (say google)
if you subscribe to Which i think they did a survey fairly recently

or look at the following but its NOT a recommendation only an example
http://www.britishinsurance.com/

newlywed

Thanks for those links. That article of Martin's helps loads to work out how much I should be getting a quote for - which is the bit that always completely puzzled me! Thanks.

Just need to sit and work out all the figures and read through the Britishinsurance guides to get an idea.

Cheers.

AGB863

CLAPTON wrote:

problems may arise if you own a house jointly with OH

I have just looked this up for another client of mine regarding the same question.

Upon death - where a property is jointly owned- it transfers to the other person - and it is not part of the deceased estate- unless there was a loan secured on it - so with a credit card debt etc - the creditors have no claim on the property.

PigginSkint

This is a really useful thread for me because I have been wondering the same!

One thing that I have been wondering about though is this: my house is just owned by me. OH is not on the mortgage or the deeds and to be quite honest this is not likely to happen for a very long time as OH had problems in the past and so has a very poor credit score - e.g. he can only get a basic cash bank account.

If I make a will and leave my house to him, does it then become his property and therefore any creditors that may remain after I die would not be able to make a claim on it?

Presumably if I died intestate then my house would be used to pay any debts that I might leave? I wouldn't really want to do this because I obviously I wouldn't want to leave OH with nowhere to live.

Or would I be better just leaving my house to my son? (he's 11)