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Life insurance query

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Gers
Gers Posts: 12,168 Forumite
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in Insurance & life assurance
A relative has told me that the Life Insurance company has told her (sorry..) that the monies are to be paid to the deceased's estate rather than to her - she is the second named beneficiary.

Is this normal? Is this true? I am struggling to believe this and would welcome any help.

thanks

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  • dunstonh
    dunstonh Posts: 116,844 Forumite
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    Is this normal?
    Depends on how the life policy is written.

    If the policy is not in trust and single life or not owned by another then the proceeds are paid into the estate.

    If the policy is in trust or is joint life or ir owned by another then the proceeds are not paid into the estate.
    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.
  • Gers
    Gers Posts: 12,168 Forumite
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    dunstonh wrote: »
    Depends on how the life policy is written.

    If the policy is not in trust and single life or not owned by another then the proceeds are paid into the estate.

    If the policy is in trust or is joint life or ir owned by another then the proceeds are not paid into the estate.

    Thanks for that - I will make further enquiries, but what do you mean by 'owned by another'???
  • dunstonh
    dunstonh Posts: 116,844 Forumite
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    what do you mean by 'owned by another'???

    Life assurance has a policy owner and a life assured (or multiple owners or multiple life assureds). The owner doesnt need to be the life assured. It can be used to help with payments not being held up with probate or IHT issues where a trust document may not be required.
    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.
  • Gers
    Gers Posts: 12,168 Forumite
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    dunstonh wrote: »
    Life assurance has a policy owner and a life assured (or multiple owners or multiple life assureds). The owner doesnt need to be the life assured. It can be used to help with payments not being held up with probate or IHT issues where a trust document may not be required.

    Many thanks! HOWEVER... if there is a second named person does that not make it a joint life thing?

    Thank goodness I'm not the person involved but it is in the family.
  • dunstonh
    dunstonh Posts: 116,844 Forumite
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    You can have have single life, joint owner but in most cases it would be joint life, joint owner.
    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.
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