Feedback on our SOA please...

JCS1

The OR's interest is that when (not if with life assurance policies - it is the one certain thing in life) anything happens, even 50 years after discharge, they would receive any monies due, distribute funds, and pay any left over back to the beneficiaries.

Slightly more complicated as funeral expenses get paid from the estate first, etc.

kepar

Ineedaname wrote: »

For the last time. The OR would have no further interest in the policy if the BR buys the BI back.

HOWEVER. If the BR claims on the policy during their BR year and receives a payout then the OR MUST be told of this windfall. The OR could then have a claim on that money as it is surplus to reasonable living expenses, the same as any other windfall received during BR year, a lottery win or inheritance for example.

It's perfectly simple and I really don't see why you don't get it. The OR is highly unlikely to allow a BR to keep cash received when it could go to pay OR fees instead.

I agree that the OR would have to be told, no problem there.
You say that the OR would have no interest in the policy if you buy the BI
Then you contradict yourself by saying the OR would take the money. Show me where is says that.

JCS1

kepar wrote: »

I agree that the OR would have to be told, no problem there.
You say that the OR would have no interest in the policy if you buy the BI
Then you contradict yourself by saying the OR would take the money. Show me where is says that.

I suspect it might be considered an after acquired asset, I'll check the technical manual in the morning - got to go do the last lamb bottle feed of the day

Ineedaname

Thanks JCS, that's all I want, someone to show us the truth to put an end to this neither kepar or myself know the actual rules on the matter. Looking forward to hearing from you in the morning.

Take care of those lambikins now.

JCS1

OK, have been thinking about this one. Husband and wife go bankrupt, both have life assurance policies that pay out to the other in event of death. They both purchase the BI in the policy.

On of them dies before discharge, the life assurance pays out, but the money would be classed as an inheritance at this point, so the OR has an interest in it as it's now an after acquired asset.

dojoman

kepar wrote: »

Yes we both bought the policies back, thank you. We were told by the OR that if anything happened to us , he would not take the money because we had bought his interest in it.

I don't think your OR explained things well to you.

So get him to put up a link to where it says the OR will take the money.
Not what is said, but a link.

Whatever, I am bored with this now, time to move on.