Life insurance when not married

[CucumberCool]

I have a one year old with my partner who I am not married to. We do not have a mortgage (renting). I am the main earner.

Read through money saving expert on it and feel pretty confident in getting a plan. I have a couple of questions though.

However, I haven't been able to find out who gets the money if I do die? Do I say who I want it to go to?

If it goes automatically to my daughter I think a Family income benefit would be best. If my partner the lump sum payout would make more sense....

Also is 200,000 enough? Would I be able to add to it and increase it if I earn more in the future?

You can write into your will who you want it to go to or put it into trust. I'm not sure if you can add later on as you may have to take out a new plan and they'd want to know nothing healthwise has changed with you. I don't think it would automatically go to your partner if you are not married.

I took out enough to pay off my mortgage and 20K critical illness cover.

Thank you for your answer. If I don't have a will, who gets it?

I'd imagine your daughter.
btw, you can make a will online. I did mine recently ( was quite sick and had a scare but only early 40s!). I paid about £100 for it. I did mine with Freewill.

I don't think she'd have access to it until she turns 18 though.

It automatically goes to your children. If they are under 18 it will go into trust.

I don’t know if it can stay in the property with the surviving partner until they are 18, or if he would have to sell the house to put their half into trust though.

The money will be paid to your estate and be dealt with in accordance with your will or intestacy rules. If your estate is over the nil rate band there will be inheritance tax payable at 40%.

You should write it in trust so it gets paid directly to your beneficiaries without potentially incurring tax.

Make a will. It's important once you have a child.

Put the policy into trust. It's a simple form to complete, at no cost, and it will help ensure that the right money gets into the right hands at the right time. Won't need to go through Probate so can be paid to the trustees/beneficiaries quite quickly.

Ask for a Discretionary Trust Deed as part of the life policy application paperwork. Or if you've already taken out the policy that's OK, it can still be put into trust at a later date.

Going to look into making a Will too. Am still curious as how the insurance company will know who is to give the money to. Is it next of kin automatically? And I suppose the next of kin would be my daughter not my partner?

Definitely choosing to put it in trust.

You state in the policy, I pay for a policy for my partner which pays out to me if he dies ( did this as partner not divorced). I did most of the application, partner just needed to confirm he was happy for the policy

If you write the policy in trust then the insurance company pays out the policy proceeds to the trustees, who in turn arrange to pass the money to the beneficiaries.

If you don't put the policy in trust, then the insurance company would make payment to your estate. If you have a Will then your Executors would probably have made the death claim on the policy and would then distribute to your beneficiaries as per your Will. If you have no Will then your estate would be distributed by following the laws of intestacy. If you are not married it would all go to your child(ren).

There are two insurance companies (Guardian an Royal London) who now offer a life policy where you can nominate a beneficiary to receive the proceeds, so doesn't involve a trust but aims to achieve something very similar.

I named the beneficiaries on mine. I also amended them after having children.

If you're saving in a pension check what happens with it in event of your death.

Thanks all.
Good point about the pension. Will check it out.