Ex husband life insurance

Wmo

I am in the process of divorcing my husband. I have a life insurance policy which I pay for as part of benifit given by my employer. I contacted them and they say I can only keep the policy going until we are divorced. Is this correct? I would like to keep it because if something was to happen to him my maintance payment would stop. Should I ask for something to be written into the minute of agreement? He is a serving police officer(Scotland) but lives with someone else now so would my son receive nothing from the death in service and it all go to her? Sorry not sure what I should be doing.

magpiecottage

It is not clear what you mean from this.

In respect of your own life, you can pay as much (or as little) as you like, subject only to an insurance company being willing to cover you and you continuing to pay the premiums.

Any policy covering you via your employer will usually be part of its pension scheme. You can usually use a "expression of wish" form or similar document - and can specify it is to be used for the benefit of your son.

As far as your ex is concerned, he can use a similar expression of wish in respect of lump sum benefits. It is entirely his call as to how this was done but you could challenge this and ask that some or all of it was used for the benefit of your son if, at the time, he was still financially dependent on him.

The scheme may also provide a pension for a dependent child which he would normally be entitled to although it might be shared with any other children.

In theory, you could also take out a life policy on the life of your ex to meet any losses (e.g. maintenance payments) in the event of his death but you would need his co-operation to set it up.

rochja

Technically, are you the policy owner or just the policy payer? Does your employer own the policy? If they own the policy then they dictate the rules. Otherwise, as you have made clear, you have an insurable interest in your husband and can therefore take insurance on his life. If you cannot maintain the work sponsored policy then there seems no reason why you cannot take out a fresh policy.

Wmo

Thank you both for your replies. My question was a bit jumbled! I will contact the insurance department again and ask further questions.

jonesMUFCforever

Once you are divorced he will not be an insurable risk as far as you are concerned. You could not even take out a new policy on him.

Brightspark87

if it is offered through your employer its likely to be called 'death in service' and you nomiate beneficaries such as family members or your spouse. However, it is down to the trustees (the scheme will be under a master trust) to decided who it should be paid too. Its not a taxable benefit under P11D so worth keeping if its offered as you basically get it for free. Change the people you want to benefit by contacting the people who manage the scheme. Your pending divorce is likely to mean that even if you pass away whilst he you will have a spouse, it won't necessarily go to them. Hope this helps and good luck!