Yes I agree with Francesca
A life insurance policy is a chose in action and therefore when one owner dies the survivor automatically takes the legal title. However, like Francesca says you also need to consider the beneficial interest. Each person owns 50% of the beneficial interest. So when one dies the market value of their share is included in their IHT calculation as a “gift” to the survivor. Normally when you are dealing with a married couple this is irrelevant due to the spouse exemption but where the owners are not married there is no such exemption that can be applied so potentially there may be an IHT liability on the deceased’s estate.
Kim