Sunlife Over 50 Life Insurance?

TheLegendOfMart

TheLegendOfMart

TheLegendOfMart

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My dad has two Over 50 Life Insurance plans with Sunlife and he's worried about what will happen to the money when he passes.

He has some debt and wants to leave the money to me and not his estate.

He called Sunlife and asked about adding me as beneficiary and they said they don't add beneficiaries. It either goes to the spouse or if they don't have one then the children.

He asked to clarify whether it would go to his estate or not because he doesn't want debts gobbling up the money. He is making an effort to pay off what he owes, this isn't a case of wanting to run up debt and then never paying it off. The woman on the phone just kept saying they don't add beneficiaries and never actually answered the question.

Does anyone here know if that plan specifically would go to his estate and in turn out to his debtors?
 
A policy like this SunLife one is only really intended to pay for the funeral etc. with maybe a bit on top. It's going to have limited flexibility.

My simplistic understanding is that in the UK a payout from a life insurance policy would form part of the total estate. The usual way to get around it for inheritance tax purposes (and presumably to protect it from other debts too) is to use a Trust. However, that would seem more applicable for a larger sum assured and a whole life type of policy.
 
Mr Badger said:
A policy like this SunLife one is only really intended to pay for the funeral etc. with maybe a bit on top. It's going to have limited flexibility.

My simplistic understanding is that in the UK a payout from a life insurance policy would form part of the total estate. The usual way to get around it for inheritance tax purposes (and presumably to protect it from other debts too) is to use a Trust. However, that would seem more applicable for a larger sum assured and a whole life type of policy.
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Yes he has a funeral plan and then another one to leave me a bit of money I think is £7500.

From what I understand it normally would go to his estate unless you set up the plan "in trust". It doesn't pay out to a trust but the deed itself is the trust that is paid out to the trustee.
 
Be better off paying off the debt now rather than paying into these plans. They pay out a fixed sum in the future and the real value is decreasing each year. That is the longer you live the more you pay in but the less your beneficiary receives in real terms.
 
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200sols said:
Be better off paying off the debt now rather than paying into these plans. They pay out a fixed sum in the future and the real value is decreasing each year. That is the longer you live the more you pay in but the less your beneficiary receives in real terms.
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i wonder if a debtor can raid a pension pot? also I would tell my parents to spend their money not save it for me...
 
Hagar said:
Will you be an executor of his estate? If so you will have responsibilities for the collection of assets (property, insurances, bank accounts) and the payment of debts (bills etc.)
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This - debts must be paid/cleared before funds can be passed on.

www.gov.uk

Dealing with the estate of someone who's died

If you already have the right or have probate (as an executor or administrator) you can start dealing with the estate. You may need to apply for the right to deal with the estate of the person who's died (also called 'probate').
www.gov.uk www.gov.uk

Trusts can be used but I suspect Sunlife won't have a suitable trust document for use.
 
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