Life Assurance - assignment

Arfhurdaly

Hi,

I have just purchased a joint life term assurance policy from Norwich Union. I wondered how it pays out on death? Should i "assign" policy, or does it get payable to the other person only if its in agreement with their will?

Apologies for my ingnorance in these matters.

Arhurdaly

dunstonh

If you have not placed the policy in trust it will be paid to the policy owners, whoever they are. If you assigned yourselves as joint owners as well as joint life assureds then the surviving partner will be paid the proceeds.

The Will has no impact on the life assurance on first death but obviously would do on second death. However, a trust may be more appropriate if inheritance tax is an issue you have children for whom the life assurance is meant to protect.

Arfhurdaly

Thanks for your advice i think i understand. Its a joint policy, payable on 1st death. No trust set up.

So am i correct in thinking that you could have a joint life policy and my wife could leave all her assets to her children under a will, but as we have a joint life policy, her death causes the policy to be payable to me?

dunstonh

Assuming you are joint owners as well as joint lifes assured then the spouse gets the payout.