Took out life insurance but no will?

ktcoil

Hi me and my partner(not married) both bought a house and have a joint mortgage, we have took out individual life insurance being the full amount on outstanding mortgage as well as £10,000 on top, this is for 25 years(mortgage hopefully payed unless take extra out in future), the life insurances are not desending down.


There was no information to explain if I die does this go to my partner or just family? would I will have to be in place for money to go to partner?


thanks

dunstonh

How did you set up the life assurance?
Was it joint owner, joint life, first death? - that is fine for a mortgage and the will doesnt matter as it pays to the other owner. If it was one of the other methods then you may not find the money goes where you want it.

There was no information to explain if I die does this go to my partner or just family? would I will have to be in place for money to go to partner?

The adviser you did this through should cover off or filter out the various ways you can set up plans or utilise trusts to suit requirements. Have a word with them.

ktcoil

thanks I did it online, it did ask how much was on the mortgage and how much debt I had(wanted to cover) then I can chose for the amount I pay monthly to go down if I want my life insurance payout to go down monthly too, or if I keep the amount of life insurance to stay for 25 years at that amount I just pay the same amount for 25 years.

Weighty1

Even if you chose the life insurance which goes down it does not mean your premiums will go down. The premiums will stay fixed throughout the term, it simply works out as a cheaper option than a plan in which the cover remains level.

ktcoil

Thanks yea that's fine.

kingstreet

Have you done joint cover?

If not have you written it in trust?

If you have done single cover and not written it in trust, the benefit passes into your estate on death.

If you have left no will, the proceeds will pass according to the intestacy rules and not to your partner.

You need to remedy this immediately with a trust or a will or both.

ktcoil

thanks, yea it was just single cover and nothing about a trust on the online application.


What would be the best place to get a joint for a couple who are not married and would like to leave enough money to pay mortgage first.


thanks

Chris_Pollard

kt coil. you could contact your insurer and ask them to provide Trust forms. This would enable you and your partner to put the policies in Trust so that you know the life insurance will be paid to the right beneficiaries. If you are looking to replace your policies, I'd recommend you contact a financial adviser so that the policies are suitable.

dunstonh

hanks, yea it was just single cover and nothing about a trust on the online application.

Did you do it as single life, single owner (where you are the owner) or single life, single owner (where your partner is the owner) or single life, joint owner (where you and your partner are the owners)?

Joint life, joint owner, first death seems to make more sense for a life assurance covering a mortgage. For family protection, that may not be the case depending on the needs.

ktcoil

sorry we both took out single life insurance(2 weeks apart) the mortgage is a joint and from a joint account we have, both obviously different names as not married.

Keep_pedalling

Why the reluctance to do a will? Just get them sorted, it would be stupid not to do so.