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movin on
Average Member
United Kingdom
946 Posts |
 Posted - 13 December 2008 : 19:05:58
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Im very confused by the buying back of 2 policies i hold jointly with hubby, who did not go br.
I have been asked if i want to buy the policies back, but just dont have the money at the moment, and if i get new policies they are going to cost more.
My first question is - If i dont buy the policies back and I died would ALL the money be kept by OR, or just enough to cover what i owed creditors and any fees incurred by OR.
Secondly, - If i dont buy the policies back (and hubby did no go br), and say he died first, would that still be held by OR ? or would it all be released?
It seems alot to pay when the debts are nowhere near what the payouts would be. Debts were £33k and Insurance policies are £240k
Any help is appreciated as im very confused by it all.
Jenny
xx
Onwards and Upwards is the way im going :-0)
From "Moneyworries" to "Movin On" in 3 months is fantastic :-))
xx |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 13 December 2008 : 20:15:07
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Hi Jenny
I chose not to pay the money to the OR but took out new policies.
It may be better to have a look at my blog i think i have something on there about the life policies if not have a look through this:
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/
Good luck mate :-)
Jo
x
18 Weeks down
34 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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movin on
Average Member
United Kingdom
946 Posts |
Posted - 13 December 2008 : 21:27:12
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Thanks Jo
I thought i wanted to keep them but am so unsure about what to do with them....would you suggest a call to the or on monday to clarify my queries ?
Dont know why, but i got a niggling feeling that wont go away with these policies.
xx
Onwards and Upwards is the way im going :-0)
From "Moneyworries" to "Movin On" in 3 months is fantastic :-))
xx |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 13 December 2008 : 21:43:56
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Hi Jenny
It may be worth giving the OR a call on Monday and then you can put your worries to rest.
Let me know how it all goes :-)
Jo
x
18 Weeks down
34 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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debtrider
Junior Member
494 Posts |
Posted - 14 December 2008 : 00:29:34
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hello jenny
If your policies are worth £240k and your debts were £33k i would imagine the OR would take the money owed on your debts plus any expenses and interest incurred if someone died. So I would have thought you would have plenty of money left over.
If you have been paying the premiums on these policies for some time then I would try and keep them and buy them back from the OR for £50 each. In saying this everyones circumstances are different and if you cannot afford to buy them back from the OR, then you could always stop paying the premiums on these policies and take out new polices. £240K less your debt does seem a lot of money to miss out on if someone dies for the sake of paying £50 for the policies.
Debtrider |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 14 December 2008 : 09:25:04
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Jenny
I too think that you need to think about this carefully. I should imagine that you would only have to pay out the £50 on each policy and for you only not for your OH so it does make sense for you and the amounts that you are insured.
You dont have to pay them straight away just inform them of your intentions to do so.
Our ones were for £100k and £156k and so the £200 it would have cost to buy them would have made no sense as i found new policies for less, but bare in mind that i only had higher amounts to clear the debts should one or the other die, seeing as the only debt now is the mortgage i lowered the amounts and so my policies are now cheaper and i did not pay the money to the OR to keep them.
If i had needed the amounts to stay the same i may well have bought them back.
It is down to you and for the money i would think about buying them, at least then your safe. :-)
LOL
Jo
x
19 Weeks down
33 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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movin on
Average Member
United Kingdom
946 Posts |
Posted - 14 December 2008 : 20:15:23
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Thank you dr and Jo
I have had the policies for years and really wanted to keep them but thought i would have to pay the or straight away.
I am going to inform them i want to keep them both and ask how long they will honour my decision without me losing them, and i will of course keep the policy premiums up to date in the meantime.
Thank you both so much for putting an 'outsiders' perspective on things, its just what i needed 
Onwards and Upwards is the way im going :-0)
From "Moneyworries" to "Movin On" in 3 months is fantastic :-))
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Insurance Policies
