which type of insurance

catford

Sadly,this xmas my father in law died and i've since discovered that probably, like a lot of people, he had no insurance.As his wife is still alive i would like to take the precaution of taking out a small policy on her life to cover the expenses should she decide to keep him company!!--It sounds harsh but I cant afford one funeral,let alone two.Q:- can I do this without her permission? what sort of policy would I need ,and what sort of cost would be looking at??Any advice welcome!!

dunstonh

You have to have an insurable interest to commence a life assurance on someone. I'm not sure what expenses you believe you would suffer in the event of her death. For example, the funeral expenses can be paid out of the estate. Any contracts she had would cease on death and no liability can be passed to you unless you have acted as guarantor on anything.

So, apart from the fact you cannot do it without her permission, I don't believe you could justify it as an insurable interest.

catford

There is no" estate "to pay for a funeral,and i'm not guarantor for anything.So who pays for the funeral,if not the relatives?? Doesn,t that count as an insurable interest?

dunstonh

It is unusual for someone to die with no assets in the estate (money, property and possessions). However, the local council or in some cases, the health authority will pay for a simple service where there is no funds available and no spouse to pay. The local authority have a duty to arrange a burial or cremation of any person who has died in their area. The social fund does have some qualifying rules though. Usually, its related to being on benefits.

Whoever orders the funeral, has to pay for the funeral costs. So it would be important not to make arrangements without passing responsibility to the local authority.

If your mother in law is willing to cover her own funeral expenses, she could commence a funeral expenses plan where the direct debit comes from your account. However, it would need her to complete the application, sign it and for you to sign the direct debit.

If she is really homeless and without possessions, then you could justify an insurable interest if it is you that would most likely pay the funeral. Personally, I am not a big fan of these plans. I often consider the £25pm would be better put into a savings account. 2-3 years down the road and there is enough there for a service.