life policy

[flowerpower6]

if someone says they will owe a relative money by leaving it in a life insurance policy until the owed person reaches a certain age, or the owner of the policy dies. how watertight is this? i assume that a life insurance policy can be changed or cashed in at any time at ones convenience. please advice.

[bednobs]

dont assume anything. My life insurance policy, for example pays out a reducing sum and will pay out on my death, if it is in the next 21 years. If i do die, that money will be distributed as per my will, not to a named beneficiary of the policy. The money will be paid to my estate. If i then wanted to leave it to the cats home, i could. If i wanted to stop paying this policy at any time over the next 21 years i could, but i wont get anything from it. That is just 1 type of LI policy (bear in mind it becomes less valuable with a reducing payout every year)
The only person who can change or "cash in" a LI policy the named person isnt it?

[flowerpower6]

thanks for advice..however, the circumstances are my son has been left out of his grandads will as he was born after the will was written. now my brother wont add my son onto the will along with four other grandkids but says he has added the same share onto his life insurance policy and will, and therefore will inherit the amount later on at time of their death??? however the reason he didnt want to add my son to the will in the first place was because he has very large debts and is planning to move to australia to live.. i am aware that a will can be changed at any time, not sure what kind of guarantee the policy holds.... worried..

[flowerpower6]

looking for barmaid. seems to know some stuff. please have a look at my question Life policy if you get the chance over the next few days, thanks.

[bednobs]

sounds very strange to me - personally i cant see what difference it will make whether your brother puts the money in a LI policy or gives it to your son now - your brother still wont have the money so it wont help him with either his move or his debts

[factor-fiction]

Are we talking about two different wills here- your brother's or the grandfather's. Is there a connection? If it's just the grandfather's will I don't understand why your brother has any say in which children are added to that will. Or has the grandfather died and your brother is distributing the estate?

And I'm confused when you say " will inherit the amount later on at time of their death". Whose death- do you mean theirs or his?