If you die with a mortgage and no life insurance...

holly_hobby

Let_Us_See wrote: »

Why is DIS being discussed within this thread. In the initial post there is no specific mention of employment let alone any DIS benefit. So why bang on about DIS?

Because its been raised by a poster as a mge repayment method .... thats why

H

marathonic

If someone has a mortgage of, say, £100,000 and a pension of the same value, is there a need for life insurance?

I realise that, should that person have children or a spouse, they may want to leave them a lump sum in addition to the house but would, for example, a death in service benefit of twice their salary together with a spouses pension of 25% be enough?

I realise everyones position is different but what percentage of people, roughly, would you consider the above protection to be enough for?

holly_hobby

Would the DIS benefit be sufficient to pay off the os mge, or would the spouses pension be enough to maintain the mortgage .... whats the question ?

Perhaps start a separate thread for an answer to this, so as not to hijack the OPs .

Holly x

Zero_Sum

kingstreet wrote: »

Death In Service cover doesn't go into the estate of the deceased. As it's written under irrevocable trust it is paid, at the Trustees discretion, to the beneficiary named in the latest nomination by the member.

It is certain that the estate must settle the mortgage by selling the property, or by the beneficiar(y/ies) repaying the mortgage by cash, or by raising a new mortgage to repay the old one..

It does if you haven't nominated anyone for it to be paid to.

Let_Us_See

"Because (DIS) its been raised by a poster as a mge repayment method .... thats why."

So what? It has nothing to do with the original thread, so why high jack it with DIS comments? Absolutely pointless and just causes confusion to the original post.

holly_hobby

Let_Us_See wrote: »

So what? It has nothing to do with the original thread, so why high jack it with DIS comments? Absolutely pointless and just causes confusion to the original post.

Because I wanted to comment and clarify on the DIS issue raised - which I felt was important and relevant.

kingstreet

Zero_Sum wrote: »

It does if you haven't nominated anyone for it to be paid to.

AIUI if no nomination is made, the Trustees pay the benefit to the legal personal representatives of the deceased named in The Grant of Probate or Letters of Administration. Even if there is no nomination made, the benefit is never paid into the estate and does not add to it for IhT purposes.

Zero_Sum

kingstreet wrote: »

AIUI if no nomination is made, the Trustees pay the benefit to the legal personal representatives of the deceased named in The Grant of Probate or Letters of Administration. Even if there is no nomination made, the benefit is never paid into the estate and does not add to it for IhT purposes.

I'm just going on whats quoted in my pension statement.

kingstreet

Fair enough. You may wish to query that as it may have inheritance tax implications if a large sum is suddenly dumped in your estate when it need not be.

holly_hobby

Zero_Sum wrote: »

It does if you haven't nominated anyone for it to be paid to.

Actually it doesn't as the benefits are held within a discrectionary trust.

That means in the absence of an EOW, the trustees will examine your family circumstances, petition from any parties for the benefit, and any valid will at the time of death, in order to to determine the part(ies) to whom they feel it is appropriate the DIS sum is paid.

The trustess will consider paying benefit to a partner, dependants, family member or personal rep of the deceased - but it always remains os of the "estate" due to its trust status.

Hope this helps

Holly