October 17, 2019
Can I arrange life insurance on my ex-partner?

Our Client

We were contacted by Mrs V who was going through a very stressful period following her recent divorce.  Her ex-husband had agreed to pay her maintenance of £2,000 per month over the next 10 years.

This would have been Mrs V’s main source of income until their children were fully independent. Mrs V realised that she would be in severe financial difficulty, should anything happen to her ex-husband. As he would not be able to provide the maintenance payments.

What can be done to preserve maintenance payments?

This is a relatively common problem and many insurance companies, although not all, do provide life insurance policies to cover this situation. This type of policy is called a ‘Life of Another’ policy.

In this case, Mrs V could arrange and pay for a life insurance policy based on the life of her ex-husband. The policy would legally belong to Mrs V and the proceeds of a claim would be made immediately to her.

What type of policy can cover monthly maintenance payments?

The policy was required to replace a lost monthly income. Therefore, we suggested that it was set up as a Family Income Benefit plan.  This means that rather than paying a lump sum like most life insurance policies. It pays a tax-free* monthly amount until the end of the required term. Ideally, a policy such as this should be index-linked.

*The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on your individual circumstances.

Does my ex-partner have to be told about the policy?

It is important to note that the ex-partner must be fully aware of the policy. They must also be willing to complete the medical and lifestyle insurance questions. Rest assured, the paperwork is kept separate. The financial documents were sent to Mrs V and the copy of the completed medical questionnaire to Mr V. Neither party has access to the other’s documents.

We contacted Mr V (her 56-year-old ex-husband) and he was happy to assist. He answered all medical questions within a 15-minute telephone call. The policy was ready to start immediately, however, Mrs V asked us to wait for 6 weeks before starting the policy because she wanted the terms of the divorced finalised first.

Mrs V is relieved that she has arranged a Family Income Benefit policy, on a ‘Life of Another’ basis which will provide her with a monthly income of £2,000, over the required term should Mr V pass away during this time. The monthly premium is £33.51.

Client ref: 145633621

Mrs V has kindly since provided the following review on Reviews.co.uk

5-star review:

“I came to Future Proof at a stressful time, not really sure what I needed to do. They calmly and quickly provided me with clear, helpful answers and found a solution for me. Highly recommend.”
Oct 2019

Getting expert advice is essential, and Mrs V was very happy that we were able to obtain comprehensive cover for her as it gave her peace of mind should the worst happen in the future.

Please note that the premiums provided are indicative only and are based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

For help and advice – Call 0800 644 4468

Office hours – Mon – Thurs 09.00 to 19.00 and Fri 09.00 to 17.00

Interested in related stories?

Jon’s moving story – being diagnosed with cancer.

The protection industry pays out £5.3 billion in 2018.

What questions will I be asked by an adviser?

Why you can trust Future Proof.

The benefits of an index-linked insurance policy

Next steps

Whilst you are welcome to get a quote online we would recommend you talk to one of our advisers.

Any quote we provide you with will take into account to your circumstances, your medical history, as well as your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover.
What really matters is the premium you are offered, after your application has been assessed.

Call 0800 644 4468 for help and advice

Please feel free to read our Independent client reviews, or read about the team at Future ProofCall me back

Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life
Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to

Links to third-party websites exist for information only and we accept no responsibility or liability for the information contained on any such sites.
The existence of a link to another website does not imply or express
endorsement of its provider, products or services by us or St. James’s Place.