there are 3 persons on an endowment mortgage (joint tenacey), but the endowment policy is only for one person(who has sold it before it matures). Surely each of the 3 people would have had to be on the policy - ie not a single policy for just one person ?
If the policy was in one name then that person could do what he/she wanted provided there was no legal charge on it by the mortgage company. It is up to all of you individually to insure your own lifes.Surely you have an agreement as how the mortgage should be repaid? You don't expect one person to set up a policy to cover the whole mortgage do you? By inference you are paying interest only and I would make sure that all 3 names on mortgage are sat down in front of an official of the mortgage company ASAP to discuss repayment, which probably means paying more per month to transfer to repayment mortgage. IMO It is best to have a written contract stressing in clear terms what is to happen to their share of property in case one of you die. Eric
There can be those whose lives are insured and there can be those who own the policy, and these can be different people. When someone says the policy is in Mr X's name this means nothing. Does it mean Mr X's life is the one insured or does it mean Mr X owns the policy (the life insured being Mr Y)? Please clarify. Please don't say 3 people would have to *be on the policy * because each of them may not be the beneficial owners.
Rob Graham
"Eric Jones" wrote
That's a bit strong isn't it? Why should they *need* to??
Here is an example of how it sometimes works. My wife and I take out an endowment policy in respect of a property we are are purchasing. The policy is owned jointly by us and both of our lives are insured for the term of the policy. The policy is then "assigned" to the building society providing the mortgage. The building society now have first claim on the policy.
My wife and I get divorced and sell the house. The endowment policy is once again the joint property of me and my now "ex-wife". As part of the divorce settlement I buy my ex-wife's share of the policy so that the policy now becomes my sole property. In order to do this I have to notify the endowment policy providers, who send me a form that my ex-wife signs, in the presence of a witness. When I send the completed form back to the policy providers they send me notification that the policy is now owned solely by me.
Even though the policy is now owned solely by me, both me and my ex-wife are still named on the policy as having our lives insured for the term of the policy. If I were to sell the policy, to a complete stranger, that person would then own the policy, and would be able to collect the life insurance in the event of death of me or my ex-wife, during the term of the policy.
The person, or persons, named on a policy, and the person/s who actually owns the policy may be entirely different people. You would need to research the circumstances in which the policy was purchased and its subsequent history to know how one person came to own the policy and was subsequently able to sell it on before it matured.
Ellis
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