Serious illness insurance cover and implications on assets

A reader of The Observer recently asked what would happen to serious illness compensation if the unmarried couple who bought the insurance split up. As the couple have taken out a mortgage to buy a house as ‘tenants in common,’ the reader queries how the compensation would be divided if they put it towards the mortgage and subsequently parted ways.

John Darnton and Alice Mathams comment that if the payment is used in this way (not all lender policies insist on this) the couple should consider agreeing their respective shares and that if they were married and then divorced, the court will consider each party’s contributions and needs.

The full article is available on The Guardian.