Does anyone know whether I need to buy life insurance for each BTL mortgage I have please?

VictoriaW9876

We have a few Buy-to- lets and currently have several life insurances running.
Do we need to pay out to several concurrent life insurances?
i wonder if they will all pay out, or whether we can do without some/most
it is an expensive extra monthly payment i would like to cut out
any advice please?

dunstonh

Do we need to pay out to several concurrent life insurances?

no

i wonder if they will all pay out,

Why wouldnt they pay out? Life assurance is pretty much one of the easist to claim on. After all alive and dead are hard to argue.

or whether we can do without some/most
it is an expensive extra monthly payment i would like to cut out

Nobody here can answer that as we do not know your financial position, needs and objectives. However, one clear thing you can easily work out is if someone is going to be financially worse off in the event of your death then you have a life assurance need. How much will depend on the level of need that exists.

Aretnap

You can have as many life insurance policies as you like and yes they will all pay out in the event of your death - you are not restricted to a single payout in the same way that you are with, say, car insurance (ie you can't insure your car twice, drive it into a tree and expect to claim twice its value).

Whether you actually need all those policies is a different question. There's no obvious reason why you would need life insurance specifically to cover a BTL mortgage. Life insurance is not compulsory even with a mortgage on your main home - provided you are willing to take the risk that the surviving partner may have to move out if one of you dies. If you died, would it be such a disaster if the houses were sold and the surplus equity paid to your heirs? Or would your partner be able to take over the mortgages, which are hopefully being paid by the rental income anyway so it doesn't massively matter whose name they are in?

Of course if you have a partner and/or children who would struggle to cope financially if you died then you do need life insurance. However you should think about the amount of cover you need in terms of all the expenses they would have to cover without your income - not just in terms of mortgages.