In the event of your death, lump sums and pensions are payable depending upon your circumstances.
Payment of a Lump Sum
Upon your death, the lump sum would be paid to your spouse. It is possible for you to nominate somebody else who you would like to benefit, but please remember, if this is not your spouse, the lump sum may be subject to inheritance tax. If you do not nominate anybody at all and you do not have a spouse, then the lump sum would be paid directly to your estate.
It is important to remember that the lump sum must be claimed for and paid out within 2 years of death - otherwise there is a tax charge of 55%.
If you die after the age of 75 (and you were 75 as at 5th April 2011), then the lump sum is converted into a pension and paid out to your dependant.
If you die after the age of 75 (and you were 75 AFTER the 5th April 2011), then the lump sum is subject to a tax charge of 55%, which is deducted before the lump sum is paid out.
Payment of Dependant's Pension
Upon you death, a pension will be immediately paid out to your spouse. If you do not have a legally recognised relationship with your partner, you must apply to register your relationship in order that your chosen beneficiary will be paid the pension.
A child's pension can be paid until the age 23. If the child has a condition that prevents them from working beyond that age, then the pension may be payable indefinitely.