Endowement ex partner has died

lordmpl

HI, Quite compicated this, but need to know where i stand for the phone calls on Monday.

I bought a house in 2000 with a partner i was living with at the time, i could not get on the mortgage due to my cicumstances but the endowement policy was taken out in both our names.

After we split in 2006, i got nothing and we fell out completely, Due the fact she was unemployed and I paid all the mortgage and endowement for 6 years.
I got a letter from The insolvency service a couple of months ago asking me to either buy the her half of the policy at the value at present or to sign the forms to cash it in and have my 50% as a cheque when the policy is cancelled. Due to her going bankrupt.

I choose the 50% as I could not afford to buy the other half out.

The policy has now been cancelled the other day, I spoke to the Insolvency Service and they said it will be 2 weeks till i get my cheque.

I have found out tonight that my ex has died 7 weeks ago.

So what could happen now??

If she had no will, do i get the full amount? or as it was a life insurance policy too can i claim that, even though it has been cancelled, allthough it was still active when she died?

I know nothing of these matters... Any help would be greatly appreciated.

Thrugelmir

The reason you were offered 50% of the policy value is most likely that:

"You must have a reason for taking out a Joint Life or Life of Another Policy like marriage or house purchase - this is known as insurable interest. If you are single, separated or divorced you cannot just insure your partner because you feel like it".

So technically the policy became void in 2006. No payment will be made on first death to the other party.

lordmpl

Thrugelmir wrote: »

The reason you were offered 50% of the policy value is most likely that:



So technically the policy became void in 2006. No payment will be made on first death to the other party.

The endowement policy was linked to a house that we bought, But 6 months after I left she changed the mortgage to a prepayment mortgage, so the endowement policy was left, and never paid into anymore, allthough still live, as I get yearly updates. We were never married just cohabiting.
I was led to believe at the time of taking out the policy that upon one of the policy holders death it automatically matures to pay off the original loan, or is this not the case as the original mortgage is no longer valid?

Thanks, Mark.

Thrugelmir

If the mortgage was changed to a repayment basis then the lender wouldn't have had a charge over the policy (more recently many don't anyway). As the policy was no longer in place to repay the mortgage.

I assume also that by changing the mortgage your ex put the mortgage into solely her name as well.

If the policy premiums were unpaid then the policy would have a greatly reduced value, as the policy would have been made paid up. The benefit or cover would be the value of the policy at that time, plus subsequent accrued bonuses. Of which you've been offered 50% as your share.

lordmpl

OK, I over the 6 years i was paying it have paid £5k into it, after i left no more was paid, I have been offered £1600 for my share, If the other policyholder is now deceased and left no will does that mean that 100% should be mine.

The insolvencey service dealing with the bankruptcy are not aware of her death, as when i spoke to them last thursday they told me they have been trying to contact her.

Would the bankruptcy still stand as it has not gone through yet, the recievers are still collating information and funds.

I was royaly stiffed with the house as we bought it for 38,000 in 2000 and she sold it 2 years ago for 160,000, she had never worked a day in her life, and pretended she was a tenant after i left and the local council were paying her the "Rent" that she paid the mortgage with. Obviously i am a bit sour..

She paid off the mortgage with this, leaving her a nice tidy sum, Not sure why she was going bakrupt, she was still signing on with the DSS till she died a few weeks back.

Thanks for all your replies so far, Mark.

getmore4less

how did she get the mortgage in the first place with no earned income?

lordmpl

getmore4less wrote: »

how did she get the mortgage in the first place with no earned income?

Her dad put his name up for guarantor...

Thanks, Mark.