Do I need my Mortgage/Life Insurance?

[wen]

For those who have read a few of my posts will know my wife and I are going BR and we are moving into rented accommodation.

We have life insurance to cover the mortgage, should either one of us have died. This was not a requirement of our mortgage though. As we are disposing of our house and will not be paying the mortgage anymore, is there any value to the OR of the policy? If we cancelled the policy, would the OR be unhappy with our actions? Similarly, could we keep the policy (even though the house would be gone), and would the expense be allowed in our I/E calculations?

[MelanieGiles]

It probably will be allowed, so I suggest that you don't cancel the policy until you have your meeting with the OR post-bankruptcy.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[JulianSampson]

Speak to the OR and take financial advice. You are probably aware that there are several types of policy- some of which have little surrender value, but others have considerable worth. In the long term (assuming it is a growth and not a flat policy) you will probably be recommended to maintain payments but your financial adviser can take this further with you...

Kind regards

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

[wen]

It was just a flat policy for the value of the mortgage.

[iva experts]

Hello Wen,

I wouldn't cancel anything just yet until your OR has made a decision. They may not see this as a problem and allow you to keep it.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/