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Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

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Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

Postby Ruadhagan » Fri Sep 29, 2017 11:10 pm

My circumstances are as follows

Just bought a house this year

I don't have any children

I don't have a wife or partner

My next of kin is my parents

The only asset I have to speak of is my house & my only liability is the mortgage

I am not making any arrangements for funerals or anything like that at this stage

The mortgage life insurance will pay off the mortgage if I die before the mortgage is paid off. In view of this & my personal circumstances is it worth making a will? My only interest at this stage is protecting the house. Any thoughts & suggestions would be much appreciated.
Ruadhagan
 
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Joined: Fri Jan 03, 2014 5:37 pm

Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

Postby Orson » Fri Sep 29, 2017 11:17 pm

6 years ago, my partner died of cancer.
We bought a house together.
He had a critical illness policy.
It paid out and I was able to pay off the mortgage.
We had only been in the house 4 years, so had paid little off.
It meant that I could live here with no worries.
If this is the type of thing you are thinking about, then yes, it can be worth it if you are wanting to leave your house to someone.
If not, the house would get sold, the mortgage paid off and any remaining would likely to go next of kin.
It is worth making a will too. The people left behind then have a much easier task of sorting out your affairs.
Orson
 
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Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

Postby cyneric » Sun Oct 01, 2017 4:53 am

That type of insurance is a scam.. It's just someone trying to make a dollar off of you.
It sounds great, but why do it if you're going to be dead anyways? Your parents won't be responsible for the mortgage, and if they were.. They'd just sell the property anyhow.
This is just like a car salesmen trying to sell you additional protection to protect your car seats.
cyneric
 
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Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

Postby Addaneye » Sun Oct 01, 2017 5:27 am

What do you mean "protect" your house.

The purpose if life assurance (not insurance) is to pay out a sum of money when you die. If you want to take out a policy to pay out enough to pay your mortgage then fine. However, if you are young the chances of you dying are quite small, and if you have no dependents why have a policy that pays off the mortgage? Surely you would prefer to have the extra money in your pocket each month rather than paying that premium? And unlike some life policies, if you don't die you will get nothing back.

If you do take out the policy your mortgage will be paid off when you die. Which means your estate will have a house that has to be left to somebody. If you make a will you get to choose who. Otherwise it will go according to the statutory intestacy rules, which if you are not married and have no children basically means it will go to your parents, or if they have already died it will go to your siblings.

If you do not take out a policy your house will have to be sold when you die in order to repay the mortgage. If anything is left over it will go as above. If the mortgage is more than the house is worth the shortfall gets written off - the debt cannot pass to anyone else.

Either way, a will is much more important than a life assurance policy, because the will puts you in control of who gets anything you leave behind. And if you choose not to take out assurance now you can always change your mind later if your circumstances change.
Addaneye
 
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Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

Postby Slaed » Mon Oct 02, 2017 10:57 am

OK, should you drop dead today without a will, then your mortgage is automatically paid off, so nothing to worry about on that front

As to your house - well that will go to your next of kin, ie your parents, in the absence of kids or spouse.

What you have to remember is that your parents are a lot older than you and will likely die first - then when you die, you might not having any relatives.
So its important that you make a will either to leave the house to your parents or if they have gone, to another family member or friend, or you can ask that the house is sold and the money raised is used for such and such

Without a will you can't do any of that.

Not sure quite what you mean though about protecting the house - protecting it from what ?
Slaed
 
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Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

Postby Hazaiah » Mon Oct 02, 2017 1:07 pm

Get and compare quotes from different companies at - INSURERATES.INFO- RE Life insurance for my parents? Hi i am interested in taking out a life insurance policy on my parents in the UK just wondering if this is possible and whether it can be shared between me and my siblings many thanks.
Hazaiah
 
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Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

Postby Carson » Tue Oct 03, 2017 5:39 pm

Not sure why in your circumstances, like mine, no children, no partner or wife and have "own" house would have mortgage life insurance - pay off mortgage when I die, seems a waste of money each month.
Carson
 
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Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

Postby Elazaro » Wed Oct 04, 2017 2:44 am

You make a will to make sure that when you die your assets go to the person that you want them to go to.


I don't know what you mean by making a will to protect your house.
When you are dead the person who inherits your house can do with it what ever they want, and when you are dead why would you care about this?
Elazaro
 
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Is It Worth Making A Will To Protect My House If I Have Mortgage Life Insurance? (uk Only)?

Postby Devere » Sat Oct 07, 2017 6:40 pm

When you make a will, you appoint an executor.
When you die, the executor deals with probate and arranges for your estate to be put in order.
Probate gives the executor authority to deal with the insurance company the mortgage lender and your bank.
The net assets are then passed to whoever you name in your will.
(Elderly Father Christmas impressionists are an excellent cause).

If you don't make a will, your next of kin have to apply to the probate office for letters of administration and your estate passes according to the rules of intestacy.
In your case, that will be your parents or, if they die before you, brothers and sisters.
The process is more difficult - but that won't bother you.

Making a will is usually a good idea since it gives you control of what happens after you die.
However, first you need to give some thought to what you want to happen.
A simple will doesn't need to involve a solicitor or a firm of will-writing sharks.
You can buy a will writing pack at WH Smith or other large stationers for a few pounds and write your own.
Devere
 
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