Uninsured Debt

Stressed about Uninsured Debt?

Many people in Ireland invested in buy-to-let properties over the past few years. There was no requirement for life assurance with these loans. However the sharp decline in property values has left the property investor exposed. If he/she dies then they leave behind them a loan that is greater than the property value (negative equity). There is further exposure in the event that there is a non-rental period because the loan must be serviced and there is no rental income to contribute to the loan repayments.

How to overcome this problem?

Take out life assurance to the value of your uninsured debt at a very minimum. If you die then the life policy pays out the amount insured and you leave your estate debt-free.