4. Check if the deceased had life insurance (or other cover) in place
People often take out life insurance to cover any debts in case they die unexpectedly. A pay-out is usually tax-free, with a lump sum or regular payments going to people who are named as beneficiaries in a policy. So, always check if the deceased had taken out any insurance to pay off any debt. It’s also worth looking into whether or not the deceased had any employee benefits, such as death in service – which pays out a lump sum if a person dies while employed by a company.
Term life insurance – such as decreasing term cover – is one type of life cover that could be used to cover ongoing debts, such as a mortgage. If there’s life cover in place, then whoever inherits a deceased’s property could use insurance pay-outs to meet mortgage payments.
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