Mortgage move to single name - Life assurance ?

[deadl0ck]

Hi all,
I broke up with my ex a good few years ago and I bought her out of the house. I had the mortgage changed etc working with the bank and the solicitors.
One thing I forgot to do was change the life assurance - it's still in our joint name.
Is this a big deal or should I be ringing the life assurance company and asking them to change it to a single name (or is this going go be essentially a new policy) ?

 

[44brendan]

Not a big issue. However you could save on premiums by moving the policy to your name or taking out a new policy in your name. Either should be a fairly simple and staightforward process.

 

[Lucuma]

This is a simple thing to change. Take your exes name off, otherwise you're in the strange situation that were you to pop your clogs in the morning, your ex (as opposed to your parents, siblings, current squeeze or friend) will get a big lump of money handed to them!
If you're going to pay every month to provide for your loved ones in case you die, that money should be provided to your loved ones, not ''used to love'' ones !! ;o)

 

[Bronte]

. Take your exes name off, otherwise you're in the strange situation that were you to pop your clogs in the morning, your ex (as opposed to your parents, siblings, current squeeze or friend) will get a big lump of money handed to them!

Wouldn't the money go to pay off the mortgage? The deed having persumable been assigned to the bank.

 

[Lucuma]

Wouldn't the money go to pay off the mortgage? The deed having persumable been assigned to the bank.

No that would be the mortgage protection.

Life assurance is a separate thing. I took my ex's name off my life assurance but the mortgage protection is still in both our names because (unfortunately) both our names are still on the mortgage.

 

[44brendan]

Mortgage policy should be assigned to the Bank and any death benefit would be paid to the bank!

 

[Bronte]

No that would be the mortgage protection.

Life assurance is a separate thing. I took my ex's name off my life assurance but the mortgage protection is still in both our names because (unfortunately) both our names are still on the mortgage.

Are we talking about the policy that pays out when one dies, or a policy that pays out if one gets ill ?

If you're talking about the policy that was mis sold to many people, that policy will in all likelyhood never pay out.

 

[Lucuma]

Are we talking about the policy that pays out when one dies, or a policy that pays out if one gets ill ?

If you're talking about the policy that was mis sold to many people, that policy will in all likelyhood never pay out.

My life assurance is the type that pays out if you die. It used to be set up so the money would go to my ex if I died, after we broke up I changed it so that now it goes into a trust, governed by my brother, for my kids. At least this will provide for my kids if I die.

To the OP, if you don't have kids and assuming you already have mortgage protection, I would suggest cancel the life assurance altogether, do you really need it?