We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Life and critical illness cover for unmarried partners
Madeinireland101
Posts: 206 Forumite
My daughter is in the process of purchasing a property with her boyfriend. They will be buying the property as tenants in common and having a floating deed of trust to cover the fact that she will be contributing a much larger deposit. They will both be paying the mortgage in equal shares and her boyfriend may make capital repayments from time to time in order to try and level up her larger deposit - though this is uncertain - hence the need for the floating deed to adjust percentage ownership. At some point they will likely marry but not sure when.
In terms of life assurance and critical illness cover has anyone got any suggestions on the best way forward with that? as they are asking me and I don’t know. I have heard there could be issues having a joint policy compared to two single policies if the worse should happen and they decide to go their separate ways.
In addition I’ve heard that if one policy holder were to die the payout from the joint policy is not guaranteed to pay the mortgage and could go just go to whoever the will (or lack of a will) determines and they would be under no obligation to pay off the mortgage - creating an issue for the survivor. Alternatively I’ve heard that it is tied in to paying the mortgage - so not sure which it is.
Anyone had any experience of this situation? Suggestions gratefully received.
Thanks...
In terms of life assurance and critical illness cover has anyone got any suggestions on the best way forward with that? as they are asking me and I don’t know. I have heard there could be issues having a joint policy compared to two single policies if the worse should happen and they decide to go their separate ways.
In addition I’ve heard that if one policy holder were to die the payout from the joint policy is not guaranteed to pay the mortgage and could go just go to whoever the will (or lack of a will) determines and they would be under no obligation to pay off the mortgage - creating an issue for the survivor. Alternatively I’ve heard that it is tied in to paying the mortgage - so not sure which it is.
Anyone had any experience of this situation? Suggestions gratefully received.
Thanks...
0
Comments
-
Probably best to ask this in the insurance forum rather than house buying 👍2006 LBM £28,000+ in debt.
2021 mortgage and debt free, working part time and living the dream0 -
Thanks I have now done so.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards