Life insurance on ex husband

Wmo

If my soon to be ex husband opens a new life insurance policy and I pay the monthly payments and we put the policy details in our minute of agreement does anyone know of any reason they would not pay it out to me on his death. We would be doing this to cover his maintance payments I would no longer receive from him. He is living with a new partner.
Thanks

kingstreet

It would be more sensible to take cover on a "life of another" basis with you as the policyholder and him as the life assured. You will pay the premiums.

In that way, if he dies, you get the benefit.

What happens if he doesn't die and can't work and pay your maintenance? Income protection would be a far better option to ensure he still pays while he's alive, even if he can't earn.

You can do that on a life of another basis too...

Wmo

I did not know that type of policy was available. Would it be more expensive? Do all the big insurance company's sell them? Would he need to be told or fill out paperwork? Sorry lots of question I appreciate your help.

InsideInsurance

Life insurance, to those of us that work in general insurance, is a little bit odd in that you only need to have an interest in what you insure at the date of buying the policy where as with general insurance (eg car) you must have the insurable interest at the date of loss.

Covering maintenance payments certainly would be classed as an insurable interest and so you are fine on that front.

I dont know about Life pricing so have no idea if him insuring himself and putting the money in trust to you or you buying life of another to insure him directly would be cheaper. A quick chat with an IFA or Protection Broker would be able to help you

magpiecottage

InsideInsurance wrote: »

I dont know about Life pricing so have no idea if him insuring himself and putting the money in trust to you or you buying life of another to insure him directly would be cheaper.

The price is based on risk rather than the policyholder. So it should make no difference.

The only issues are demonstrating the insurable interest. As you say, you only have to show this at outset. If stops you can still continue the policy and it must still pay.

The only difference is that you could not insure your ex to pay out more than you might expect to need to replace the maintenance whereas he can insure his own life in order to provide an inheritance subject only to how much an insurer is willing to cover.

InsideInsurance

magpiecottage wrote: »

The price is based on risk rather than the policyholder. So it should make no difference.

I appreciate the main price driver is going to be the health and other key risk factors of the insured but wasnt sure if there were some other minor administration/ fidelity/ credit type risks that may make a bit of a difference in pricing - not suggesting that everyone that insures another life intends to bump them off

pastjamu

As a Protection Insurance broker my advice would be to take out a Family Income Benefit plan (actually a Decreasing Life Insurance plan) for the monthly income/maintenance that would be lost if your soon to be ex-husband dies. The term would usually be until the youngest child reaches an age of economic self-sufficiency (typically post-Uni at say 25). The key thing is for the plan to be written on a 'life of another' basis at outset or else written in Trust with you named as a co-Trustee. Any good insurance broker should be able to resolve this quite easily and most, like me, do not charge you for providing the benefit of their advice to you

dunstonh

As a Protection Insurance broker my advice would be to take out a Family Income Benefit plan

Be wary of using words like that. Your compliance team will almost certainly tell you to avoid using the word advice or giving specific solutions as the FCA have said that social media carries the same compliance issues as face to face advice. Keep the wording discussion like and somewhat vague. It should not be possible to be interpreted as advice.