Money Minder UK

Who should the money go to? (continued)

This is due to the fact that whilst the cost of two individual plans can often be very similar to the cost of setting up one joint plan, on the death of the first, the policy will pay out and leave the surviving individual with no cover.

Additionally, for inheritance tax planning reasons, people with larger estates (in excess of £325,000 for individuals or £650,000 for married couples, tax year 2010/2011), it may be better to put life insurance plans in trust and to have them pay out directly to beneficiaries other than a spouse or civil partner, like children or grand children.

Beneficiaries aren't limited to family, business partners will normally have an insurable interest in each other.

If you're interested in researching life insurance further you should speak to an independent financial adviser. Alternatively, you can use our interactive online research tool, the Finance Navigator. Based on the answers you give to a number of targeted questions, the Life Insurance Finance Navigator will help you to establish your own life insurance needs. It will then produce a bespoke guidance report for you to read through to help you make an informed decision. It will also allow you to learn more about some of the most commonly used life insurance plans.

Once you have your report, you can then use our online quotation system to find some of the most competitively priced life insurance plans from a selection of major UK life insurance providers. Once you have found the right plan for you, use our 'apply online' facility.

Next: A quick checklist for shopping around