Loans and Death

bobcat80

Can anyone tell me what happens if you die before repaying a loan back to the RBS if the loan as no cover. I am married but the loan is in my name only, and we live in a council house. The RBS as said they will recover the outstanding amount from estate what little there is, or my wife would have to pay it, thats why they say get covered. Is this right.
bob

Torry_Quine

After death any outstanding loans are paid from the estate of the deceased, your surving spouse is not liable

chani1

yes thats the case as aabove however do not let them push you into there protection my best advice is to get a stand alone life policy for only a small amount each month you can cover your loan plus extra and doesn't finish when the loan does so you'll always have that peace of mind should the worst happen.

Bossyboots

That is appalling. As already said, that is not true. I think I would be inclined to make a complaint about that advice as if you hadn't checked you would buying cover you don't need.

Obviously, they want you to cover the loan in case there is not enough to pay it back if you die but giving you wrong information is out of order.

bobcat80

thanks u all for the advice, i am now searching for a cover, but i will be reading the small print
bob