Life Insurance / Assurance? Good idea?

BatchedMetting

Thanks for the extra comments - sorry I missed them at the time.

Is there any benefit to me any my mrs getting a joint one - if they even exist - so that if one of us dies the other one gets the payment, rather than two separate ones.

Just thought the premiums might be lower compared to two separate ones, but then its twice as likely the insurer will have to pay out so maybe not!

Also, how does the insurer find out that the person has died? Would the recipient have to make the claim, or are they somehow notified that you've died?
Thanks!

ACG

a joint life policy is possible.
The premium is more expensive than a single life policy but cheaper than 2 x single life policies.

Chris_Pollard

Batched - the insurer would only know of a death if they were told, usually by the next of kin (NoK). They would then require proof of death, normally a death certificate. Depending on the size of the policy (and whether it is owned jointly or solely) they might require proof that the NoK is entitled to the proceeds. If there was a Will this would be called Grant of Probate, if not, Grant of Letters of Administration. These are legal documents proving entitlement to a deceased's effect. On average it will take six weeks, and any death taxes would need to be paid.

To avoid all that you could set up your life insurance policy such that you and your spouse are the policyholders, or you take out a joint life policy in which case the surviving policyholder will be paid - and much more quickly.

Hope this helps.

Chris_Pollard

or you could place the policy in trust. These last options generally are best facilitated through a financial adviser who will ensure the policy is appropriately structured to meet your and your family's needs.