double life insured

bigchic66

hi could anyone tell me if i can have two life assurance policies on one house ,my mother bought our family home in 2001 as my brother stayed with her he set up a decreasing policy to match fall in the morgage in case something happened to him the property would be paid off,sadly in2004 my mother passed away leaving the house to him,he set up a morgage in his name and took out the total morgage protection policy with the morgage but still kept the original insurance ,sadly he passed away in may this year leaving both policies .do both policies pay out fully or is one void .thanks.

keigcf

We had life assurance years ago, took out a new one a few years ago as we now have children etc, but are still paying the first, so they would both pay out.

mike_the_rate_tart

Same here. I bought life assurance originally when I bought my house, and the payout was set so that the mortgage would be cleared in the event of my death.

Years later we moved to a bigger, more expensive, house and my financial advisor said that the most cost effective thing to do was leave the original life insurance policy in place and take out a new policy (which is with a different company) to top up the total amount that will be paid out.

So yes, both policies should pay out assuming your brother maintained his payments on both policies.

dwsjarcmcd

You can have as much life assurance as you want or can afford. There is no limit on the number of policies you can have, even in relation to items like house purchase. Both policies will pay out.

OshayAway

dwsjarcmcd wrote: »

You can have as much life assurance as you want or can afford. There is no limit on the number of policies you can have, even in relation to items like house purchase. Both policies will pay out.

Not so. There needs to be a relation to financial need. It's a common misconception though. If you apply for alot of cover, certain limits kick-in (depending on age) that prompt additional financial underwriting. Depending on these limits, proof of net worth / financial commitments can be insisted on in some cases to be completed by an accountant.

In the case of the op though, I doubt this will be an issue.