query re life insurance and br

crumbling

my court date was 28th sept and i had my or phone call on friday. i've received some paperwork form the or today, letters to sign and get witnessed (tricky one that!) but i see a lot of soa's posted and its usually said against life cover that the or may be interested in that.

could anyone explain for me please?

i have a life cover policy which will pay out on death or terminal illness. i put it on my form and the or asked me about it. what is likely to happen to it?

(as i'm divorced, this cover is to run until my child reaches 19 so that care can be provided for him should i not be here to look after him).

dojoman

You will be able to buy the policy back for £50, but if you were to die whilst BR then the OR would get the first call on the proceeds. Once you are discharged the OR has no call on the policy. If you don`t buy it back and you continue with the premiums, the OR will still have first call on it after discharge.

crumbling

dojoman wrote: »

You will be able to buy the policy back for £50, but if you were to die whilst BR then the OR would get the first call on the proceeds. Once you are discharged the OR has no call on the policy. If you don`t buy it back and you continue with the premiums, the OR will still have first call on it after discharge.

:eek:
so should i try to buy it back? what good will it do my kid if it can't be used for what its intended for?!

what's the usual? buy it back, hope you don't die whilst bankrupt then take out a new one after discharge?

Angiepange

crumbling wrote: »

:eek:
so should i try to buy it back? what good will it do my kid if it can't be used for what its intended for?!

what's the usual? buy it back, hope you don't die whilst bankrupt then take out a new one after discharge?

Its your decision. But if you buy it back, once you have been discharged the OR will have NO claim on it, so you do not need to buy another policy.

Or you could choose not to buy it back, in which case let the premiums lapse and it will be cancelled. You could then take out a new policy after discharge.

Angie x

crumbling

Angiepange wrote: »

Its your decision. But if you buy it back, once you have been discharged the OR will have NO claim on it, so you do not need to buy another policy.

Or you could choose not to buy it back, in which case let the premiums lapse and it will be cancelled. You could then take out a new policy after discharge.

Angie x

really sorry if i'm being totally dim angie but i don't understand.

if i buy it back now meaning that the or will have no claim on it either way (now or after discharge), why would i not need to buy another policy? if i buy this one back i have no life cover. if i don't buy it back and i die before child comes of age, the or will have the pay out?

x

debtinfo

If you buy it back from the OR it is your policy again and so you just keep it going and when it pays out (if after discharge ) it will pay out to you or your son.

If you dont buy it back it will always pay out to the OR regardless of when it pays out

Angiepange

Sorry if i confused you.

Hope DI has explained it in a clearer way.

We bought the interest in our life cover. While we were in the 12 months of BR we knew , that god forbid one of us would die, the OR would claim the payout, but we hoped that if that happened the amount we are covered for would pay back the bankruptcy, OR fees etc and anything left would go to the surviving person.

Also thought that buying a new policy after discharge may result in higher premiums than what we pay with our existing policy which we have had for years.

crumbling

debtinfo wrote: »

If you buy it back from the OR it is your policy again and so you just keep it going and when it pays out (if after discharge ) it will pay out to you or your son.

If you dont buy it back it will always pay out to the OR regardless of when it pays out

ahhhhh, you mean i will have to buy it back from the or for 50 quid? i thought everyone meant buy it from the company its with - in effect, close it.

so, i should be asked whether i want to do that by the or? not intending to die quite yet but who knows what the future holds so i want to at least provide something for my nipper.

i think the lemsips i've been downing today have addled my brain:o

crumbling

Angiepange wrote: »

Sorry if i confused you.

Hope DI has explained it in a clearer way.

We bought the interest in our life cover. While we were in the 12 months of BR we knew , that god forbid one of us would die, the OR would claim the payout, but we hoped that if that happened the amount we are covered for would pay back the bankruptcy, OR fees etc and anything left would go to the surviving person.

Also thought that buying a new policy after discharge may result in higher premiums than what we pay with our existing policy which we have had for years.

thank you angie - it really doesn't take much to confuse me at the moment!

all i have to do is read and sign some forms but rather than do that i've been debobbling an old blanket instead - really will get back on the case tomorrow:)

Angiepange

crumbling wrote: »

thank you angie - it really doesn't take much to confuse me at the moment!

all i have to do is read and sign some forms but rather than do that i've been debobbling an old blanket instead - really will get back on the case tomorrow:)

:) dont worry hun, I can relate to that

Hope you can switch off and give yourself a rest tonight. It can all get mind numbing very easily. Take care of yourself xx