unmarried, big age gap, life insurance options??

mrskpickles

Hi there,

I am in a relationship with a man much older than me, and we have discussed the fact that really he may not have a great amount of years left, and also may get unwell etc.

I am 35 he is 70 (only relevant for the question, not asking for opinions on it)

Obviously I want to be protected when he dies, as I live in his house, I have debts, and really not much financial stability. So when he dies, I will have nothing, I have two children, and although they live with there Dad, I want to be financially secure for them.

I do not want him to put me in his will for lots of reasons.

I am wondering whether we can set up life insurance? But would it pay out to his next of kin if he died? or could he name me as benificiary? I have read about putting the policy in 'trust' but not sure what this means?

any advice would be greatly appreciated.

K

dunstonh

I am wondering whether we can set up life insurance?

yes you can.

But would it pay out to his next of kin if he died?

It would pay out to whom you selected it to pay out to either by the way you set the policy up (who owns it) or the type of trust you use (which indicates the beneficiary).

I have read about putting the policy in 'trust' but not sure what this means?

It is one of the ways of making sure you set the destination of the payout to the person of your choice.

mrskpickles

thank you for that, so what next. Does he set it up in his name, and name me as benficiary?? Any tips on providers, as he is 70?? thank you again

ACG

Setting up a life policy will be very expensive. I did a quote for someone who was 72 and want life cover in place for 20 years - were talking over £100 a month, i forget the sum assured but it wasnt a hufe amount.

To give you an idea, i have a rate card in front of me a company i have just been reading up on - for an over 50s life plan it would cost £50 a month for a sum assured of £5,900. The sum assured would reduce each year as he got older.

As for setting it up in your own name, you can set it up in a trust. This basically puts the policy outside of your partners estate and in its own entity. It avoids probate etc when doing this so you get the money quicker (usually a matter of weeks).

getmore4less

If you are financialy dependant on him and he accepts this then he should be making provisions for you.

You will need capital to buy a place to live and income to replace he financial dependancy

Life insurance is not realy the right product in these situations it will be very expensive to set up cover that provides the sort of replacemnt you need.

Who is going to pay for this insurance if you got it?

The alternative might be an attempt to claim dependancy from the estate but that can get very expensive.

property.advert

It is unlikely you will be able to afford any life assurance premium which would provide a capital sum large enough. I think you need to revisit the issue of including you in his will unless your needs are very small.

From inference, you seem to require a home and an income as well as a cash sum to settle your debts. By any reckoning, that amounts to a few hundred thousand pounds, perhaps more.

Thrugelmir

mrskpickles wrote: »

I do not want him to put me in his will for lots of reasons.

This your only real way of protecting your interest.