Life Assurance is owner the beneficiary?

ben42

My wife and I are both taking out life assurance so that if one of us dies the other will have some money to pay bills and look after the kids. we have decided on separate policies.
Who is the beneficiary of a policy? Is it the applicant or the policy owner.
I understand that if I take out a policy and then die the money will go into my estate and then pay tax etc before the money goes to my wife.
Can she be the owner and therefore get the payout direct? I assume if this is the case I am still the applicant!!
Thanks for any help. Ben

dunstonh

Who is the beneficiary of a policy? Is it the applicant or the policy owner.

The owner is the owner of the policy. They do not need to be a benefiary. You could be writing the policy on a single life basis with you as owner and life assured or you could write the policy with you as owner and your wife as life assured.

I understand that if I take out a policy and then die the money will go into my estate and then pay tax etc before the money goes to my wife.

That is not correct. If you write the policy with you as owner and life assured and dont place the plicy in trust then it will go to your estate. There is no tax to pay when the money is transferred to spouse.

Can she be the owner and therefore get the payout direct? I assume if this is the case I am still the applicant!!

You either want to write the policy with her as owner and you life assured (known as life of another) or write the policy in trust naming the benficiary(ies).