If that seven year itch strikes, and one or other of you wants to head for the hills the person who s having the premium deducted from their account might find themselves well and truly lumbered. Caught between a rock and a hard place they must continue paying cover on the absent partner or have to cancel the policy and take out a new one. Another good reason for a single policy is that the surviving partner will still need cover if there are dependant children and so will have to take out another policy. The premiums might well be steep depending on the age and state of health of the remaining person . Providing a tax-free lump sum if you die within the period insured, rates for this term insurance have dropped recently because of the competitive market.
Premiums vary depending on age, gender, and state of health.
They were Direct Line, Legal and General, Standard Life and Tesco Personal Finance. This way the policy proceeds can be passed on to your children without having to wait for probate to be granted. It is simple to arrange and most insurance companies will provide the trust form free of charge. For couples, this has a similar effect to writing the policy in trust. You take out a policy on your partner s life with you as the policy owner and your partner as the person insured.