We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Insurance on a Bank Loan?

fishlizzie
fishlizzie Posts: 11 Forumite
hello, I have a bank loan in my name only. I am 67 and wasn't eligible for the bank's insurance on it so took out a private policy to cover the amount and term of loan. This is costing me £27 a month and I would like to know if I really need it?
The loan is with the HSBC. If I died before the loan was paid off, would it be passed on to my next of kin {my son}?

Comments

  • If you die without insurance the debt falls on your estate.
    If your estate does not have sufficent funds to repay the outstanding debt it has to be written off.
    I am assuming here that it is a personal loan that we are talking about and not a secured loan.
  • fishlizzie
    fishlizzie Posts: 11 Forumite
    it's not a secured loan.
    By estate, if you mean a house, I only rent one and don't have any valuables either so am I OK to cancel the insurance?
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    By estate I mean the total value of everything you own as at the date of your death.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.2K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.2K Work, Benefits & Business
  • 603.8K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.