Should your policy be written “in Trust”?

We believe that all Life policies should be written “in trust”.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

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Where can I find help?
To help you find your question, we have organised our FAQ’s into relevant groups. Answers to all sorts of more general questions are found in the General Questions section.
What is Life Insurance?
Life Insurance is also known as Term Insurance.
Does Life Insurance have to be associated with a mortgage?
No it does not. Many policies are used to provide additional financial security for the family.
Should you consider Critical Illness cover instead?
If you have no dependants or already have Life Insurance, you should consider Critical Illness Insurance instead of Life Insurance.
Should you include Critical Illness cover on your Life Insurance policy?
You should certainly consider taking out Critical illness cover whether you combine it into your Life Insurance policy (which is by far the cheapest way to buy both insurances) or you take out separate policies (which gives you far more protection – see below).
If you have your policy written “in trust” and you were to die, the proceeds would be paid quickly and directly to the person you intended and will not form part of your taxable estate.

This makes certain that the money from the policy avoids inheritance tax. This could mean a tax saving of 40%. (Incidentally, inheritance tax is not an issue on estates passing between spouses as these are automatically exempt of inheritance tax.)

 

Frequently Asked Questions related to the above topic.
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