| Only 29% of UK adults have life insurance, and even fewer have critical illness or income protection. | Writing life insurance policies into trust is tax-efficient and can help expedite payouts to beneficiaries. | Effective financial planning should always include discussions about insurance to protect your finances and loved ones. |
Are you confident you have all the relevant cover in place to protect your finances? Having a financial plan should go hand-in-hand with a conversation about insurance.
The statistics
We may not like to think about death, but the reality is it is inevitable; however, data has revealed that only 29% of UK adults have some form of life insurance3. Meanwhile, just 13% have critical illness cover4. Even fewer (6%) have income protection, despite one in 13 working people having a long-term sickness5. These figures highlight that a concerning number of Brits risk leaving themselves and their loved ones vulnerable during life’s toughest moments.
Writing life insurance policies into trust
Writing your life insurance policy into trust is a tax-efficient way of protecting and preserving your wealth for future generations. This arrangement makes your trustees the legal owners of your policy, so the proceeds will not be considered as part of your estate when you die. Not only does this mean that under current rules the payout will not be subject to Inheritance Tax, but your beneficiaries should receive the money swiftly as it will not have to go through probate.
We can advise on the best cover for you and your circumstances.
3FCA, 2023
4Health Foundation, 2024
5ONS, 2023
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.