Just wondering if a life assurance policy is taken into account towards the marital pot? If so is it the current surrender value or the final value which is taken into account?

In case it matters I'm in Scotland, and the policy was taken out to cover the purchase price of my old property (the one prior to the marital home) in the event of my death.

scotbob,

is this an endowment policy you are talking about? The sort that is part life insurance and part savings - to pay off your mortgage?

If so I am pretty sure current surrender value would be part of the assets pot. It certainly is in Englad and Wales.

Hadenoughnow

Yes sounds about right - I'll add in the current value to the pot and see where we go from there.

Thanks HEN

If its an endowment policy then it has two components. Firstly an investment to pay off the mortgage and you pay interest only on a mortgage and expect (hopefully) that the investment will pay off the capital sum. The second type is an investment / life policy. These usually have two components. Firstly the main aim is to pay out on your death but also has a very small investment value. The third type is a pay out only on death type policy . I believe this is called a whole life policy where the only payout is on death. These usually have a fixed term i.e. life of mortgage but can also be extended until you die. There are different forms of policy as well. Some are with profits and some without. The big payout only comes at the end of a policy i.e. after 25 years and to cash in prior to the end means no profit. Companies will actually buy this type of policy and continue paying the premiums and will pay a higher rate for cash in than you would get by going through the insurance company.