The ownership of an insurance policy isn’t as simple as it sounds. There are several different types of policy ownership, and each comes with its own considerations. But there’s one thing all policy ownerships have in common; they’re determined by law. And your insurer always has to follow the law, no matter what.
Did you know:
The owner of a life insurance policy has three key responsibilities, what are they?
There can be 4 different types of ownership.
1. Owning your own policy. What are the benefits? What are the risks?
2. Sole ownership of another person’s life. What are the benefits? What are the risks?
3. Jointly owning a policy. What are the benefits? What are the risks?
4. Company owned policy. What are the benefits? What are the risks?
Bonus question; can a Trust own the policy?
At the end of the day, whoever owns a policy holds all the cards. They get to make decisions about the policy, including who any claim money will be paid to. This makes it extremely important to get your policy ownership right. For help deciding the policy ownership structure that’s right for you, talk to us at Halo Advisors Limited today.
For More information:
Call: (02) 11835835
Email Us: shak@haloAdvisors.co.nz
