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Loan liability

  • 07-09-2010 1:49pm
    #1
    Gryzor
    Registered Users, Registered Users 2 Posts: 1,715 ✭✭✭


    Myself and the missus took out the most basic life insurance policy when we bought our house. Now that there is a little man in the picture we are looking at it a bit closer. One question that came up was regarding personal loans.

    We both have personal car loans. In the event of one of us passing, does the spouse inheret the others personal loan?? Neither loan is covered by any sort of payment protection etc...


Comments

  • #2
    sarahlulu
    Registered Users, Registered Users 2 Posts: 295 ✭✭sarahlulu


    Yes, if you do not have payment protection, the other partner would inherit the debt. Usually this would then be repayed by life assurance, or if not, the surviving party would have to take over the repayments.


  • #3
    GerardKeating
    Registered Users, Registered Users 2 Posts: 7,806 ✭✭✭GerardKeating


    Gryzor wrote: »
    Myself and the missus took out the most basic life insurance policy when we bought our house. Now that there is a little man in the picture we are looking at it a bit closer. One question that came up was regarding personal loans.

    We both have personal car loans. In the event of one of us passing, does the spouse inheret the others personal loan?? Neither loan is covered by any sort of payment protection etc...
    sarahlulu wrote: »
    Yes, if you do not have payment protection, the other partner would inherit the debt. Usually this would then be repayed by life assurance, or if not, the surviving party would have to take over the repayments.

    The surviving spouse does not inherit the debts of the partner, but the debts would have to paid from the estate before any inheritance is paid out.


  • #4
    Gryzor
    Registered Users, Registered Users 2 Posts: 1,715 ✭✭✭Gryzor


    OK, thanks for the answers lads...


  • #5
    bills
    Registered Users, Registered Users 2 Posts: 952 ✭✭✭bills


    if the loans are with a credit union, there may be free loan protection insurance which will cover the loan in the event of death.


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