Quick question about life insurance

oligopoly

Hi all, I've held a Decreasing Life Insurance policy for the last decade against a mortgage, but recently circumstances have changed and so I need to review things. I have recently separated from my wife and have bought a house for myself to live in.

Thinking through scenarios, I would like it so if I die then the equity in my house passes to my wife/ex to give to the kids (this would be updated in my will).

And then a new policy whereby if my wife was to die in the next 10 years then I would have my mortgage paid out so that I could afford childcare provisions for the kids (in 10 years they would be old enough to walk to and from school...)

Is it normal to have a life insurance policy covering this type of scenario even though we're no longer together? And if so, would it be my wife applying (even though I would be paying?). I'm a bit confused by it all and would appreciate some direction. 

Thank you in advance.

DullGreyGuy

You are entitled to take life insurance on anyone where at the time of buying the insurance you can demonstrate you'd be financially worse off by their passing. So assuming custody of the kids moves to you and you aren't right now paying some crazy high maintenance money right now then seems a reasonable risk to cover. 

oligopoly

OK great, thanks. And the policy goes in her name but I do it using her details?

DullGreyGuy

oligopoly said:

OK great, thanks. And the policy goes in her name but I do it using her details?

It can be either way, she as the policyholder with the moneys to go into trust to your benefit or you as the policyholder in which case the trust element is less necessary as it wouldn't form part of her estate anyway. 

We have some better Protection Specialists here than I who'll suggest if the former makes life better in any way (eg more possible insurers so potentially better pricing) or not. Alternatively speak to a Whole of Market Advisory Protection Broker who'll advise the same. 

Naturally if she is the policyholder she could make changes after purchase such that the policy no longer fulfilled your intended purpose. So there is a bit of a risk making her the PH depending no the relationship and how it may change over time.