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If I buy a million dollar whole life insurance policy on my wife and I die first - What will my wife be paid?

So, I am the owner of the policy on my wife which let us say has a cash value of 450,000 dollars and the death benefit was promised to be a million dollars. But instead of my wife dying - I, the owner of the policy, die. My will states that all my assets pass to my spouse. So what will my wife be paid - 450,000 or a million or some other figure?

Public Comments

1. Your wife won't get any insurance since you aren't insured. So she will only acquire your assets after Taxes and stuff are taken out (Stamp duty etc)
2. The only way she'd get a million dollars is if you have it in your bank account before you die.
3. Not unless she dies. Then the whole million goes to her heirs. If my husband bought a big policy on me, I would leave town with no forwarding address. I would be afraid he would be too tempted to kill me ;-)
4. The owner heirs get nothing. If there is a contingent owner then a new owner will be named that can do whatever they want with the policy. The policyowner has full control of the policy. If the owner dies no one get anything. The only death benefit is on the person insured. If this was not your intention then you need to speak to your insurance agent or company to see if you can roll over the cash value into a different kind of policy or investment. It's called a 1035 exchange. Ask your agent. They should be explaining the policy to you especially that big of a policy. The agent is making big commission on it. Let them do their job. This can get a little difficult to explain between the benefits of the insured and the difference when your the owner. You really need to speak to your agent.
5. Nothing. She will inherit the policy and it will be her decision what to do with it.
6. Nothing. YOU aren't insured. your policy won't pay out. SHE isn't dead. The policy won't pay out, until she DIES. When you die, likely the ownership of this policy will pass to her, and then she takes over payments, and chooses the beneficiary.
7. There will be no pay out of the policy unless the insured passes away. In this case your wife is the insured so the only way the death benefit will be paid out is if she passes. If you pass away as owner of the policy ownership will transfer to your wife unless you have set it up otherwise. By her becoming owner of the policy she would have full access to any and all cash value in the policy and would then need to decide the future of the insurance. My best advice is to speak to an independent insurance broker and judging from your questions you need to find an different one than the one that sold you that policy. It sounds as if he didn't do the best thing for you since you still have unanswered questions. Please let me know if you have any questions.
8. Your wife will have to assume ownership of the policy. She may continue to pay the premiums. The policy is on her life and I assume you are the beneficiary. If you die before her, she would have to notify the insurance company for them to send a transfer of ownership form for her to complete. The cash value will remain in the policy until she decides to withdraw it. You need to talk to your tax advisor to find out whether or not your wife will have to pay taxes, which I don't believe so, because of the change of ownership. CA licensed - 10 years mob442ins@yahoo.com