Investment Bonds (Life Funds) - Why is there an insurance payout at first death from a jointly held Bond? - UK

When an Onshore or Offshore Bond is input, the default Insurance Payout setting is 'First to Die' regardless of whether the Bond is in Single or Joint names. If left as 'First to Die' an Insurance payout will be triggered on first death and will show in the cash flow for the year of mortality.

To change the Insurance Payout on a Bond to 'Last to die' follow the steps below:

1. Navigate to the Savings & Investments tab on the Dashboard.

2. Select the relevant Bond from the list of the clients Savings & Investments.

3. Navigate to the Insurance Payout on the Basics screen.

4. Select 'Last to die' with the drop down box.

5. Click Done.

Tip: You can set where the insurance payout is to go by navigating to Beneficiaries on the left hand menu

Enter the percentage(s) in the relevant box(es), then click OK.

6. Click Done.

7. Go to the Year View and click in the Detailed Info for the year with the first mortality event, click the Cash Flow tab and you will see that no insurance payout shows. Click the Investment tab and you will see the Bond is now shown as owned solely by the surviving client.