Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank the Senator for his remarks. I understand the issue of insurable interest is fundamental to every insurance policy and it is not easy to get over the situation of people taking out an insurance policy unless they can prove that they have interest in the policy. That is one issue.

I take on board the Senator's second point completely. If it is payable to the estate, I would be afraid and the Senator would be concerned that the Revenue would include it as part of the estate and subject to taxation as part of the estate. That would defeat the purpose to an extent. Second, it would not have to be paid by the beneficiaries of the estate. To that extent, it means that they would benefit to some extent, but I see the complications.

I have explained that the insurable sector currently provides options for people with regard to estate planning, including through section 72, and such cover may be expensive given that it is a whole-of-life type cover and insurers will price the risk accordingly.Nevertheless, there is no need to consider any amendments to either the insurance legislation or the tax code. It is not clear from the Commencement matter whether the Senator is suggesting insurance companies offering section 72 life insurance policies will allow the adult children to pay the premiums and therefore be considered the owners of the policy. The Senator has dealt with that in his comments in the meantime. The matter can only be dealt with in the next Finance Act.