Finance matters

[extraordinary]

We have a flat and mortage on my husband's name. If anything happens to him, I wont be able to pay the mortage as I don't have a regualr income. Then what will happen next?
Will the mortgage lender will take the property? I wouldn't want to live there if my husband is no longer there. I won't have any responsibility to pay the mortage, right?

Another thing I'm wondering is if my husband passes away am I automatically entitled to receive assets on my husband name?

I'd just like to be prepared I won't have financial troubles in case anything happens.

The mortgage company will expect the mortgage to be paid. The mortgage will need to be settled from his estate and the sale of the property if need be.

If you are married and there is no will in place then it will go to probate and in theory as the deceased wife you will receive a proportion of his estate (there are limits depending on how much is involved although normally the property you live in is outside of this amount.)

I think this is correct to my knowledge.

Life insurance can cover the outstanding mortgage in the event of a spouse's death. When someone is employed they may be covered by an employer's scheme or life insurance might be linked to the mortgage.

Although you say you won't want to live in the flat should your husband no longer be there I'm sure he won't want you to be left financially struggling and unable to house yourself.

My husband has a life insurance and the beneficiary has not be named yet, am I entitled to receive his death benefit automatically as next of kin?

I suggest your husband make a will to ensure that you are financially secure if he dies. He needs to make sure that the life assurance will pay off the mortgage and that the property is left to you.

The follows are my husband's life insurance terms and conditions. Can anyone explain how it's possible life cover benefit to be paid to someone who dies?

1. Life Cover Benefit

Life Cover Benefit will be payable to the Policyholder on the death of the Life Assured provided this occurs on or before the Expiry Date as specified in the Schedule.

It assumes the policy has been taken out by someone else on your husband's life. In your case I think (and you should check this) that the policy will pay out to his estate. This means that the money will then be available to pay off the mortgage.

You should check this with the insurance company and, as I said before, you should get your husband to make a will.

Policy holder is my husband.

Is making a will that he names a beneficiary?