Life policy for mortgage

completelybroke

Can anyone help please?

Do you know if it is possible to have got a mortgage without having an associated life-policy to pay off the mortgage in event of dying, I'm thinking of a period of maybe 5 years ago? I thought it was virtually obligatory but I can't find such a policy for my younger brother who died a couple of weeks ago and I'm trying to help my parents out.

Thanks for any help

Senior_Paper_Monitor

Perfectly possible - there is no requirement to purchase life cover to pay off mortgage.

Check his bank statements toi see if you can identify a S/O or D/D of appropriate size (makes a good starting point to identify any policies) - if not, probably no life cover.

Sorry to hear of your sad loss.

dunstonh

Do you know if it is possible to have got a mortgage without having an associated life-policy to pay off the mortgage in event of dying, I'm thinking of a period of maybe 5 years ago?

Yes. Most lenders have not insisted on this for about 15 years now. Its left to the individual to decide. Its nearly always recommended where there are financial dependents but not when there isnt.

I can't find such a policy for my younger brother who died a couple of weeks ago

Did he have any financial dependents? If not, that may explain why there isnt one.

Check his bank statements to see what direct debits are going through. If you cant find the policy, then you can see if a payment was being made.

Sorry for your loss.

completelybroke

Thanks
I'll do as suggested and have a good look through the bank statements.

rinkydinkpanther

Sorry for your loss. Is there any possibility your brother had death in service benefits through his employer or pension scheme ? I only ask as my death in service benefit is more than enough to cover my mortgage, and so I don't bother with separate life insurance ( I have no dependents).

completelybroke

rinkydinkpanther wrote: »

Sorry for your loss. Is there any possibility your brother had death in service benefits through his employer or pension scheme ? I only ask as my death in service benefit is more than enough to cover my mortgage, and so I don't bother with separate life insurance ( I have no dependents).

He lost his job just over 2 years ago now. He has been long term ill, and took redundancy

Senior_Paper_Monitor

Just a thought - if he had life insurance with a waiver clause and qualified as either sick/redundant - unlikely latter if voluntary redundancy - it is possible that the premium would have been waived once he became ill/unemployed, so checking recent bank accounts will obviously not show such payments.

To be sure you will need to get statements from around time he took mortgage - a hateful job this sort of thing, I know - having been there myself.

One of the best things anyone can do for their loved ones is leave your potential estate in order (and papers filed/available)!