Hi Kamikaze bob

All this talk of insurance and death and with kamikaze in your forum name, I think you should be forced to post on the 1st day of every month until the Trust Deed finishes. That way we'll know you're ok and avoided that bus!

Mark

The reasons for having decent life insurance are pretty much the same whether you're in a trust deed or not. I guess some people see the benefits of it and some don't. Me, I'm happier knowing my family will have no money worries ever again if I get hit by that proverbial bus.

So I included mine in my monthly expenditure and it went through without question.

Mine wasn't sold to me as part of my TD arrangements, I had it in place already.

Cheers,

DFW

I'm in sequestration, does the insurance policy I have need to be assigned whilst I'm sequestrated?

I'm sure the amount was supposed to pay the equivalent of my mortgage outstanding if I caught the same bus!

That amount would not, however be enough for paying all I owe, should I look to increase the sums when I renew?

Hi RBSB.

I'd have thought it would be, though you should check with your trustee on this.

In terms of increasing your cover, I'd suggest speaking with an IFA to confirm whether there would be any potential benefit for the beneficiaries if you were to do so.

Also there would be the issue of whether an increased policy cost would be acceptable to your trustee. Another question for them.

I'm not sure I quite understand what you are driving at, RBSB. Why would your policy need to be assigned, and who to? Most policies aren't assigned to mortgage lenders these days, and your mortgage lender cannot insist that you do this now that you have been sequestrated if that is what you mean.

Your trustee will have noted an interest in the policy, so I think they would have to agree to any assignment now, which they are unlikely to do.

That interest is what I was referring to as the "assignment" (using RBSB's terminology). I think that is what RBSB meant?

Ah I see. Sorry, its obvious now!

The sequestration itself does mean that the policy is effectively assigned, although under a different name - it "vests" in the trustee.

Thanks TDA-I did mean assigned to the trustee for the benefit of creditors.

I see the point of trustees needing to advise against extra costs by upping it but I wasn't sure if it's meant to cover payments during sequestration or the debts outstanding?

I also had my provider changed at renewal so I should send copies to my trustee for the new policy numbers etc. I'm guessing the trustee then has to advise the insurer of the trustee's interest?