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I’m
anxious
Will I lose the money from life insurance if I go bankrupt
Hi, I am going bankrupt .I have a life insurance in my name on my husbands life that I have paid in to for 21 years.The main reason I took this out was because I am ill and my husband cares ffor me a lot and so if anything happened to him I would need that money as I may well have to go in to care home at some point.Will I lose this to the receiver.The cash in value is only £2000.I asked cleardebt online chat and they said I wont lose it.
Official
Response
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Hi Sue
If the policy is in your name, you are the beneficiary and the policy has a surrender (cash in) value, then it is likely that this will be an asset of your bankruptcy and be available for all your creditors.
Before the Official Receiver takes steps to cash in the policy, your partner or a third party should try to make an offer to purchase this policy from the Official Receiver, thus saving the policy. If the policy is not surrendered or acquired by your partner or a third party, if your partner died and the policy pays out, then you potentially could lose a vast proportion of the pay out, as it will be an asset within your bankruptcy.
EMPLOYEE
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Hi Sue
If the policy is in your name, you are the beneficiary and the policy has a surrender (cash in) value, then it is likely that this will be an asset of your bankruptcy and be available for all your creditors.
Before the Official Receiver takes steps to cash in the policy, your partner or a third party should try to make an offer to purchase this policy from the Official Receiver, thus saving the policy. If the policy is not surrendered or acquired by your partner or a third party, if your partner died and the policy pays out, then you potentially could lose a vast proportion of the pay out, as it will be an asset within your bankruptcy.Comment -
