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modensane
Junior Member
United Kingdom
214 Posts |
 Posted - 24 June 2008 : 11:37:08
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How does one buy back a life policy?
How long after BR can this be done?
And what is the idea behind it?
Can someone, please, answer these questions for me. Thank You. |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 24 June 2008 : 13:15:52
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Hi modesane
From my memory the OR can ask you to buy back your policy for the costs of 12 months premiums.
This can be done at any time after the making of the bankruptcy order.
The idea behind it is that if you died, even after discharge, the OR would still have an interest in any payout. Buying back the policy means they no longer have an interest.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
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modensane
Junior Member
United Kingdom
214 Posts |
Posted - 24 June 2008 : 14:37:04
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| Thanks, Suzanne. Just a clarification. Do you mean that buying back a life policy would cause it to revert to what it was before one goes BR? Is the payment fixed over a period, say a year, as you said or it can vary? Does it mean that you continue paying the premium as before - but then to whom - the assurance company or the OR? Or do you have to make a lump sum payment to the OR and then continue with your assurance company as if nothing has happened. And finally, do you have to request for this facility or the OR will suggest it to you? Sorry for all these questions. |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 24 June 2008 : 14:43:19
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Buying back the policy removes any interest the OR may have in it.
You pay a lump sum to the OR (for usually the equivalent of 12 months premium) but continue to pay the premiums to the insurance company.
The OR should offer it to you.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
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modensane
Junior Member
United Kingdom
214 Posts |
Posted - 24 June 2008 : 15:03:59
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| Grateful to you, Suzanne, for the enlightenment. There is always something new to learn on this forum. Thank God I found it!!!!! |
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hammy0107
Junior Member
399 Posts |
Posted - 24 June 2008 : 17:04:08
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I thought i read somewhere you can buy it back from the OR for £50.
I have only paid into mine for 12 months and would rather stop paying it which would automatically cancel it and then start another policy when discharged. Any reason why this wouldn't be a better option? |
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GARY2
Junior Member
United Kingdom
196 Posts |
Posted - 24 June 2008 : 18:03:18
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My OR said i can buy back mine for £50. But i recommend www.cashbackkings.com this is a site were you earn money by buying stuff from companies. Im changing my life insurance to legal and general and getting £60 cashback in the process  |
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tess121068
Junior Member
211 Posts |
Posted - 24 June 2008 : 18:09:34
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Hi Garry not sure what you mean.
So you are not selling your interest in yours to the OR but buying a new product is that right. Wont the OR stil have an interest in this.
Tess |
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GARY2
Junior Member
United Kingdom
196 Posts |
Posted - 24 June 2008 : 18:20:47
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Yes im buying a new policy of £150,000 so if i die the OR can have their £43,000 back i wont care cos i will be in a box.
Im not paying the OR £50 for something i will never benefit from so i will collect the £60 and save paying the OR £50. |
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tess121068
Junior Member
211 Posts |
Posted - 24 June 2008 : 19:30:30
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I might consider this I do care cos I have a child so do need to make sure something is left.
is the 43k what your current one is worth.
Tess |
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GARY2
Junior Member
United Kingdom
196 Posts |
Posted - 24 June 2008 : 23:23:39
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| My BR debt is about £43k but the policy is for £150,000. |
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Topic |
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BUYING BACK A LIFE POLICY
