To ask how you would sort out this inheritance/will Situation?

[Willsnbills]

I am a divorced with 2DC and I have approximately 100 K that I plan on putting into a house with my partner. He has the same amount and mortgage would be for 350k.

how would you work out inheritance? I I was to remarry that is.
upon my death I would have 2 insurance payouts. One of 300k and one that would be 450k. I want to ensure my dc have enough and that my partner would be able to stay in his house (and pay off mortgage) what would be the best way to do it? What would you do? Thank you.

Why would a life policy not pay out if you died from natural causes - surely that is what you are insuring against?
wouldn't suicide be the only exception normally?

@Loopylu60

most people die from natural causes so as a pp said it would be a ridiculous business model

My insurance policy pays out on death unless that death is caused by life risking activities, suicide or doesn’t meet their terms and conditions with their definition of terminal illness. Their definition of a terminal illness is basically an illness which cannot be cured or has reached a point where it cannot be cured and/or is an illness in which your death is expected within 12 months.

So you have an insurance policy which is guaranteed to pay out even if you die of natural causes at advanced old age? I think you should check the fine print, as that sounds highly unlikely.

@Loopylu60 most policies only exclude suicide if it occurs within 12 months of policy inception (to avoid suicidal people taking out policies with suicide in mind)

I think the confusion is around the employer policy which op states will pay out on her death

As someone pointed out - it might only pay out if she dies whilst working there but would lapse once she retires

This depends on how the policy is incepted. You can take out level term cover with a mortgage, so if your mortgage is £500k, the policy will pay out £500k on death even if £300k of the mortgage has been paid off by then. This is what your brother must have had (I'm sorry for your loss).

Alternatively, you can have declining cover, which will pay out the balance of the mortgage outstanding at the time of death. This cover is cheaper than level term cover.

Of course it lapses once I retire…it’s only paid out to employees. Ten times salary.

But isn’t that how insurance works? Most people will never have a house fire but the unfortunate people who do get paid out from the money that everyone with a policy pays in. Life cover premiums depend on whether you've chosen a fixed period or life - with life cover costing higher premiums but paying out at whatever age you die with few exceptions Ie Suicide or risk taking

After the age of 75 there is a deduction but still a payout yes. It’s a life insurance and serious illness cover policy

Here is a list of the fully covered illnesses…

But are you sure it pays out even if you don't die of one of the named illnesses? It's worth a call to check.

Likewise, if it's a critical illness and life policy, worth checking what happens if you claim on the critical illness part. I have 2 such policies and in both cases, if I (for example) get breast cancer and claim the critical illness cover, the rest of the policy then lapses and pays nothing on death. I didn't appreciate this when taking the policies but found out when checking details on divorce.

Employer life cover also usually only covers employees up to a certain age, so worth checking that too. You could have a policy which only covers employees to age 60 but you work to 67.

It covers up until age 65 wherein our contract stipulates retirement. Although in some circumstances contracts can be extended another 2 years.

Looking at the specified illnesses you've posted, cardiac arrest is qualified by "with insertion of defibrillator". So if you die of a cardiac arrest without a defibrillator being inserted, are you going to be covered?

This sort of thing is grim in the same way as making your will is grim. You have to go through every conceivable scenario and test it to ensure the outcome you want is what will happen.

Thank you @Elektra1 i will be calling them this week to go through it all again. As I’m rusty enough on what it covers. There’s another section that stipulates partial cover for other illnesses etc. but I would like to ask them A LOT of what if questions to be fair!

Thankyou, it was a long time ago and his wife was doing a risky activity, yes must have been level term as he was paid the total mortgage, not that it lessened his loss in the slightest.

So i don't get why the OP is relying on her separate insurances to pay the mortgage, the lender ones are always cheaper, they were peanuts in comparison to the monthly repayments and covered them both, whatever the cause of death.

The buying as tenants in common is really good advice. If you buy as joint tenants your share of the house transfers to the other joint tenant (partner) on your death and doesn’t form part of your estate.

Whatever the details of the insurance, very sensible to be thinking about it and checking it all. Not enough people do this. For anyone interested in future-planning for their loved ones, there is an excellent will-writer on here called @Mumblechum. She did mine - I'm a lawyer and was very satisfied with the service.

We have not bought a house yet…when we buy I will of course look into this

Just a little update on this the work insurance payment is an in-service death benefit that is paid for by my workplace at no cost to me. And pays out 10 times your salary on death , obviously it only applies during your service to them so if I leave my job or retire it ceases as a benefit. It pays out up until the age of 65.

I would buy a house as tenants in common, perhaps 50% ownership each. My will wod give husband lifetime right to live, upon his death, my 50% would pass to my children.
Leave insurance moneys to who you want.

@ByQuaintAzureWasp thank you