need life insurrance for daughter

georgiesmum

My daughter and her husband have no life insurance whatsoever. They have an interest only mortgage and absolutely no savings at all. They have 3 young children.
The husband is not in good health and both are very heavy drinkers and smokers. We are pensioners who despite working for over 50 years and having a small works pension still have to rely on a small rates rebate. We have very little savings, not enough for a burial.
my question is, can i take out a life insurance for my daughter?
Hard to think about things like this but it worries me a lot.
My granddad always used to say "make sure your in a burial club " i think it's rubbed off.lol

Fire_Fox

Don't they have insurance on the mortgage? Usually that is a condition of the mortgage.
http://forums.moneysavingexpert.com/forumdisplay.php?f=21
http://www.moneysavingexpert.com/insurance/level-term-insurance

Are Social Services involved in the substance abuse/ addiction issues?

Itsgottabedone

I agree with FireFox - I'm pretty sure that a mortgage is conditional on a Life policy being taken.

daska

Mortgage insurance cover is usually just that, it pays off your mortgage, it doesn't run to anything like funeral expenses. E.G. Legal and General draws a clear distinction between family cover and mortgage cover.

If the house has some equity then the usual procedure (in the event it were needed!) would be for the funeral to be paid for by their estate. Funeral costs take precedence over debts.

georgiesmum

Fire_Fox wrote: »

Don't they have insurance on the mortgage? Usually that is a condition of the mortgage.
http://forums.moneysavingexpert.com/forumdisplay.php?f=21
http://www.moneysavingexpert.com/insurance/level-term-insurance

Are Social Services involved in the substance abuse/ addiction issues?

No, no insurance on the house. If either of them die, god forbid, then the house is gone as neither can afford to pay the mortgage on their own. I really, really could smack them.:mad:

Pee

It doesn't sound like you could afford to pay the life insurance.

What sort of insurance were you thinking of? Enough to bury them or enough to provide for their family in the future.

Eitherway I would be inclined to say that whatever you can manage to do would only affect the state help available.

I also think you will find you can only insure yourself or a spouse, as you need an insurable interest, but I may be wrong on this.

People often either don't think about what would happen if one of them died. Maybe if you discussed it with them, they would take out the policies themselves?

Fire_Fox

georgiesmum wrote: »

No, no insurance on the house. If either of them die, god forbid, then the house is gone as neither can afford to pay the mortgage on their own. I really, really could smack them.:mad:

They are probably breaching the terms of the mortgage, not sure how you would go about having the lender put pressure on them tho. Do they have buildings insurance? Again it's a condition of the mortgage - if they burn the house down they will have nowhere to live AND a massive debt.

TBH tho sorting out the substance abuse issues is likely to be the key to the entire conundrum because addicts often don't look at the future, don't put their own health nor children first, often don't have spare cash. Personally I would get every agency I could find on the case, from social services to different fields within the NHS to charities dealing with children's welfare.

georgiesmum

Pee wrote: »

It doesn't sound like you could afford to pay the life insurance.

What sort of insurance were you thinking of? Enough to bury them or enough to provide for their family in the future.

Eitherway I would be inclined to say that whatever you can manage to do would only affect the state help available.

I also think you will find you can only insure yourself or a spouse, as you need an insurable interest, but I may be wrong on this.

People often either don't think about what would happen if one of them died. Maybe if you discussed it with them, they would take out the policies themselves?

I was thinking of just a small life insurance,about £4000. I could to take one of them out. An over 50 type, (she is 50 next year ) Hate to think of things like this but i have always been one for getting insured so nobody is out of pocket.

Savvy_Sue

I don't think life insurance is obligatory on an interest only mortgage: we were unwilling to take one one WITHOUT any, but the bank didn't seem to mind!

starrystarry

Life insurance isn't obligatory on most mortgages nowadays. All lenders will recommend it, but very few make it a condition.

As Pee said, You can't take out life insurance on your daughter unless there's some insurable interest. As you're not obligated to provide the money for a funeral it's doubtful that this in itself would satisfy the insurable interest requirements. Your daughter would need to take out the policy, or her husband.

Also, if they are very heavy drinkers/smokers, with all the health problems that come with that kind of lifestyle, it's doubtful they'd be accepted for mainstream life cover (or the premium would be very expensive) and the over 50s plans are generally poor value.