Couples themselves don ’ t talk about finances enough
It seems that we can all be better at talking about finances and provisions in case the worst happens , and the adviser can help facilitate that .
Research conducted by Scottish Widows of 2,000 adults , showed that almost half ( 43 %) of partners have made no plans to ensure their other half receives a payout if they die .
The same survey found that those in unmarried relationships , approximately half ( 52 %), are unaware if their partner even has a life insurance policy in place , and more than a quarter ( 27 %) don ’ t know the value of the policy .
As marriage rates are at their lowest since records began 160 years ago , with just under 220,000 marriages in 2019 , advisers can add huge value by guiding couples sensitively through the process of understanding the different protection options available to them . Helping to instigate and facilitate these conversations is a fundamental part of an adviser ’ s role .
The consequences for clients not having these conversations when so many couples are cohabitees is that any life insurance payout could not reach the intended beneficiary or be subject to avoidable delays .
What else should cohabiting couples be aware of ?
Cohabiting couples should always have a valid will in place , as cohabiting couples do not have the same rights in life or death as married couples . Without a will , a cohabitee can claim under the inheritance ( provision for family and dependants ) act 1975 , if they have been in a relationship for at least the two years up to the point of their partner ’ s death , and that they were living in the same household as if they were a married couple .
However , these claims are complicated and expensive to progress , and any outcome is difficult to predict and often lengthy .
Couples who are in a relationship , where their financial affairs are intertwined but where they do not have the legal protection afforded by marriage or a civil partnership , should be thinking seriously about putting a cohabitation agreement in place .
This is a legally binding document that outlines the rights and obligations of each partner towards each other and can include a declaration of trust , which is a legal agreement that determines how assets and investments are divided in the event that the relationship breaks down . Advisers helping clients be more aware of what happens financially when ‘ death do us part ’ can really help a couple be more financially resilient .
For more information on how Scottish Widows protect can help you and your clients , you can visit our adviser protection centre , contact a member of our team on 03450 6577 , email us at protect @ scottishwidows . co . uk or get in touch with your dedicated business development manager .
| PROTECTION ADVISER | AUTUMN 2023 | 33