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Insurance on a Bank Loan?
fishlizzie
Posts: 11 Forumite
in Loans
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}?
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}?
0
Comments
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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.0 -
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?0 -
By estate I mean the total value of everything you own as at the date of your death.0
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