Should I cancel my partner's life assurance?

cooldudecol

Trying to cut a few costs here and there and I've had a lightbulb moment.

As I understand it, if one of us passes away, then the mortgage is paid off with mortgage life assurance.

If my partner was to pass away, then I would sell the house and move back up north. Would my partner need mortgage life assurance then?

Also, my partner isn't on the mortgage or the property deeds. If I passed away, would she get the house automatically, or would I have to write a will to state this?

shelly

cooldudecol wrote:

Also, my partner isn't on the mortgage or the property deeds. If I passed away, would she get the house automatically, or would I have to write a will to state this?

By saying partner I assume you aren't married. If you died then I don't believe she would get the house as she isn't on the mortgage. You would have to write a will to state you want her to have the house. Or get married

cooldudecol

Not married yet, but we are engaged.

Thanks for the advice Shelly. Do you know what should I do with the life assurance?

If she isn't on the mortgage and I pass away - will the house be paid off and be given to my partner (if this is stated in the will)?

shelly

cooldudecol wrote:

Not married yet, but we are engaged.

Thanks for the advice Shelly. Do you know what should I do with the life assurance?

If she isn't on the mortgage and I pass away - will the house be paid off and be given to my partner (if this is stated in the will)?

I'm not really sure so can't give solid advice. I assume though that if you state in a will that the house is to be paid off and passed to your partner than that's what will happen. Like I said, I'm not sure so maybe speak to the Insurance co or CAB.

dunstonh

Is the property tenants in common or joint ownership? If tenants in common, what happens to your partner's share on her death? Has she made a will? Would her share of the property give rise to an IHT liability?

Assuming you have a joint life decreasing term assurance, the saving you are looking at could be as little as a pound a month. Is it worth the effort?

cooldudecol

Ok, thanks Shelley.

Any advice on whether to keep my partner's life assurance?

Thanks

cooldudecol

Thanks dunston,

My partner hasn't written a will yet, so we'll have to get that sorted. The property is under my name, but we are together - so does mean we are tenants in common?

We have a joint life decreasing term assurance, which is at £59 p/m. Would it be best to shop around to see if it is cheaper to cover just myself?

My original question, would it be viable for me to have assurance, but my partner not to - if I plan to sell the house should my partner pass away?

shelly

cooldudecol wrote:

Ok, thanks Shelley.

Any advice on whether to keep my partner's life assurance?

Thanks

Sorry. No idea about that.