Life insurance policy on partner?

 jointly own my home with my partner. In the event of her death (she is 16 years older than me) her share of the property rightly passes to her children. Currently I don’t have enough cash to be able to buy her share from her children. So I would effectively be expected to sell the house and move out so my partners children could get their inheritance. Can I take out a life insurance policy on my partner so that if she were to die I would benefit from an insurance payout and be able to buy her share from her children and not have to sell and move out?

Comments

  • dunstonh
    dunstonh Posts: 115,621
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    Can I take out a life insurance policy on my partner so that if she were to die I would benefit from an insurance payout and be able to buy her share from her children and not have to sell and move out?
    yes you can. There is a clear insurable interest.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Keep_pedalling
    Keep_pedalling Posts: 16,127
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    I would have thought it a better idea her for her to make a will leaving her share of the house to her children but giving you a life interest. Likewise you do the same in case you die first. 

    As it stands her children can’t simple make you leave, they can only force a sale through a court order which would both be expensive and unlikely to suceed. 

    If you don’t have wills in place you should sort that out ASAP, a solicitor can advise on the best approach to take. Still worth looking at life insurance along side this. 
  • bryanb
    bryanb Posts: 4,977
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    If you own the house jointly (as joint tenants) the property passes to you on death of other owner. If you own as tenants in common the house passes as per the will.
    You said you own jointly
    This is an open forum, anyone can post and I just did !
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