An individual named as beneficiary to a life insurance policy would receive the proceeds of the policy and can use that money any way he or she wishes.
The beneficiary is not responsible for the mortgage of the insured person, unless the beneficiary is also named on the mortgage as a mortgagor (Borrower in a mortgage contract who mortgages the property in exchange for a loan).
If the beneficiary is not named on the insured's mortgage as a mortgagor, then the beneficiary would not be responsible for the mortgage loan and debt repayment.
However, you may want to speak with a lawyer about any obligations you may have as a beneficiary of the life insurance policy, including any tax issues related to the life insurance proceeds.
The beneficiary is not responsible for the mortgage of the insured person, unless the beneficiary is also named on the mortgage as a mortgagor (Borrower in a mortgage contract who mortgages the property in exchange for a loan).
If the beneficiary is not named on the insured's mortgage as a mortgagor, then the beneficiary would not be responsible for the mortgage loan and debt repayment.
However, you may want to speak with a lawyer about any obligations you may have as a beneficiary of the life insurance policy, including any tax issues related to the life insurance proceeds.
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