Personnal Loan

[spall40]

hi I've been offered a private loan by a lady I know to help acquire a restaurant and as she's 74 wanted to get a protection insurance on the loan in case she passes away before I've re-payed it please help thank you

[snags]

^ You forgot your link.

[SirOracle]

It is more sensible surely for you to affect a life policy on your own life so that the loan could be cleared if you died.

At age 74 the rates for a life policy are exceedingly expensive,the cost being determined by the period the cover is required for. (ie the term of the loan).

[Peter Pedant]

er you may need advice on this one.
Loaning needs a licence and if the lady does not have a licence as a money lender then as such the loan is unenforceable in the courts.

(actually you can make one down payment for one enforcement)

and so the insurance you would seek may not be available - since it is for an unlawful object.........(or as Mystic Meg would say........or not)

I am in a similar position as the creditor and have taken the view
that if the debtor is paying then the repayment schedule should be respected in the event of my death.

You may be in the position of just having to trust the person - difficult where money is involved.

Her life expectancy in good health is ten years, you know

anyway good luck with the restaurant.

Oh and make sure everything is written including what to do in the event of death. I lent a sum to some old b+gga who went and died (well he was old)
and the trustees (at the behest of the beneficiaries) cheerfully repudiated the debt - see above - they just said we arent gonna pay this is nt a loan note.
[and I said, yes it is] but they had also disposed of a car he had left me as well...o didnt we all have fun on that one. Beneficiaries - like wild animals - full of sentiments like "I have worked hard for this money" etc