life insurance

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orange
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by orange » Fri Jan 22, 2010 4:29 pm
does any else know if you allowed life insurance...if not why not life and death go on even if in debt

 

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Michael Peoples
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by Michael Peoples » Fri Jan 22, 2010 4:37 pm
There is nothing to stop you having life insurance while in an IVA but some creditors object if there is no one to leave the estate to. For example if you have life insurance, a mortgage and a family it is vital to have some protection. However, if you are single and the beneficiaries are your brothers/sisters or parents, creditors may object to effectively funding the cost.

When you die the debts are binding on your estate and the debts do not die with you. Normally the beneficiary will be the spouse and this can cause issues if there are interlocking IVAs as the life insurance clears the mortgage and the widow/widower has received a windfall. Gladly it does not happen too often.

 

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orange
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by orange » Fri Jan 22, 2010 4:44 pm
not meaning to sound morbid but we are in interlocking ivas and we have life insurance that also covers our iva...as the widow/widower might not be able to maintain the iva.thankfully we are nearly into our final6th year of our iva,after the property didnt reach the valuation

 

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Michael Peoples
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by Michael Peoples » Fri Jan 22, 2010 4:47 pm
Does the policy only cover the contributions because if so this does not address the windfall issue from any other policy linked to a mortgage? Hopefully it does not become an issue for either of you in the next twelve months or you might have to invest in a very large freezer.[Only kidding].

 

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orange
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by orange » Fri Jan 22, 2010 4:54 pm
not sure what you mean micheal but we took out enough to cover mortgage and enough to pay of debt in any event

 

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luluj
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by luluj » Fri Jan 22, 2010 5:46 pm
We took life insurance out - the cost of which comes from our savings across our allowances each month to enable this to happen - if one month we have no savings then we use the contigency money - to us it was vital that my husband was covered. I already got life insurance via work so we wanted to make it equal.
Our IP said that if we were able to pay it via our allowances set and it was not an additional allowance request then no problems !

 

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kallis3
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by kallis3 » Fri Jan 22, 2010 5:52 pm
We have life insurance covered by our IVA company which we don't pay any extra for.

Other than that, we have none. Hubby's health means it would cost too much and he would be well covered by my work if I expired first.

 

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Max
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by Max » Fri Jan 22, 2010 5:59 pm
Jan Im must not joke about this but don't you dare expire - we have a Euro to win - anywat I can't afford a wreath!

 

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kallis3
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by kallis3 » Fri Jan 22, 2010 6:02 pm
I intend to be around for a long time yet Max![:D]

 

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Max
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by Max » Fri Jan 22, 2010 6:03 pm
Good!!!!!!!!!!!!!!!!

 

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Skippy
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by Skippy » Fri Jan 22, 2010 9:33 pm
We don't have life insurance either - with Dave's age and family and medical history we just couldn't afford it.
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