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Policy Ownership
Who needs the money at Claim time?
More than once I have been approached to review a client's existing insurance, only to find that upon death, all the money will go to their Ex-Partner. I have even had a wife paying the premium for her husband's life insurance policy, only to find out the Ex-Wife would get the money upon death.
So it is very important to get the Policy Ownership right. And make sure changes are made in future years if needed.
There are various policy ownership structures that can be used, depending on the desired final outcome. Sometimes an Accountant or Lawyer may be required to advise on the best policy ownership - particularly in Business Insurance cases.
It is very common for a Couple to Both own a joint policy on them both, so that at claim time the "remaining" policy holder will receive the payment made by the insurance company. However sometimes people desire their own separate policies, only owned by themselves, and to be distributed according to their Will.
Policies on Children are generally owned by the Parents - but could also be owned by Grandparents. As the child moves into adulthood, such policies can be transferred to the child (now Adult) as the new policy owner.
Income Protection policies are almost always owned by the person who is insured.
Health Policies are usually owned by the person insured, or an Adult could own a health policy on an entire family.
A Mortgage Policy is usually owned by one person, or by a couple as a Joint Ownership Policy.
Business Insurance policies can get complicated. Partnership Insurance is usually owned by the Partners. Keyperson Insurance is usually owned by the business. Group Scheme Employee covers might be owned by the business or possibly by the employees.
It is important to make sure that at Claim Time, the money goes to the correct and desired people or person.
Your Registered Financial Adviser is the best person to discuss that with, along with possibly your Accountant or Lawyer.