I am married, with no children at present, but hope to have two sometime down the line. Looking into life insurance, I am now considering whether to:
(a) purchase two term assurance policies - one in my name, the other in my wife's name - and put both policies in trust; or (b) arrange it so that I insure my wife's life, and she insures mine.
The questions I have are: (1) if I die before my wife, will my insurable interest in my wife's life pass to my estate? Or does my insurable interest die with me? The answer to this question will determine whether I choose option (a) or option (b) above. (2) if we purchase a joint life policy and it is subsequently impossible to determine who died first (e.g. we both die at the scene, in a motor vehicle accident) is the insurance company able to avoid payment? If they are obliged to pay out, to whose estate will the benefit be payable, or will it be split?
Many thanks.