I have never been told I need to insure my payments.

Kind of goes against the point...

You don't need to have that kind of cover but if you do have it, it can form part of your monthly allowances.

I know because it was ony of my existing expenses when I entered my TD and still is.

And yes, if I didn't have those expenses then they would have gone into my monthly TD payments.

Cheers,

DFW

What do you think is the best way to go with this,as DFW says if I dont take this then it will go to my TD payments,scotslad think your lucky,anybody else in similar position

They can't force ou to take insurance, johnd. If you don't want it then tell them so. Or maybe you could ask about a cheaper level of cover instead.

As you say, though, the funds will be paid to your trust deed for the benefit of your creditors instead - which really is how it should be anyway.

I'm with AG Taggart and I have life insurance which I was advised to take out at the point of signing the TD. They said if it was cancelled the payment would just get added to my normal monthly payment so I wouldn't be any better off, seemingly some people take the insurance out and then a few months down the line cancel - is this normal procedure?

Parlay,how did you find they handled your case,it seemed to change as it went along,I dont think I will cancel,like you say I wont be any better off,it will have to be left as is.

I was also told to take cover @ £40 per month even though I told them I have a substantial life insurance cover which would pay the creditors ALL their monies outright - twice over - so I have never filled in the forms. They have not got back to me so that £40 pm is mine. Should I really contact AG Taggart and start paying this towards my TD?

Hi selleck.

That's one for you to weigh up I suppose. The danger is that it comes to light later and a backdated sum is asked for from you.

I tried to call my live cover folk yesterday to change my beneficiary, as my situation has changed drastically since I entered my TD - and they wouldn't even talk to me, as my Trustee has apparently "taken an interest". I was not told of this at the time, and I am fuming.

After calling PFK, I was told that the insurance I had taken out (at the suggestion of my Trustee, I might add) had been "taken over" by them until the end of the deed, in case I pop my clogs.

At the time I started, I was single and living with my parents. Now I am in my own place, a private rent, with a fiance, a 15-month toddler and another baby on the way in October. I wanted them covered just in case, but now any money that they should get will go elsewhere!!

Not happy, and will be challenging my Trustee over this.

Hi Kamikaze Bob.

That's certainly an interesting scenario and I'm sorry to hear that your family is currently without the cover that you thought that you had.

I wonder if our experts could confirm whether it would be usual for a trust deed provider to take an interest in a pre-existing life insurance policy that someone had before they signed a trust deed?

Hi Kamikaze Bob / TDA

As far as I'm aware this is common practice. As morbid as it sounds, if something were to happen to the individual whilst they were in the Trust Deed, any benefit to be paid out would fall to the Trust Deed estate.

Julie

Thanks for that Julie.

So if someone wanted to protect their family they would need to take out life insurance for a sum in excess of their debts, 8% annual interest on the debt, and the fees of the trust deed company?

Hi TDA.

Yes that is correct.

Julie

I started the policy at the same time as the deed, as I was advised to. They didn't say they'd be taking it if something happened!! Thing is, I don't even have the paperwork to see what coverage I have, I lost it during a house move, that's part of the reason I called.

Thankfully I have just 5 more payments to make, so hopefully I won't get hit by a bus or anything in the meantime.