Level Term Life Insurance Guide Discussion

dummydaydream

Hi. I have recently realised that my sons will be liable to pay IHT if me and hubby die as we have 2 joint life level term policies and hubby has substantial death in service cover.

Both our policies are with Aviva, taken out years ago before we had kids. I' ve read that if we put the policies into trust then they pay out after 31 days without any hassle and don't count for IHT.

Will Aviva help us to do this or do we have to contact a solicitor and pay fees. Any advice gratefully received.

kingstreet

First, death in service cover is written under irrevocable trust and does not pass into the deceased estate, so that won't add to any Inheritance Tax liability.

Onto your personal cover. Life offices have a number of standard trust forms you can choose from to put and existing policy into trust. A discretionary trust would allow you to have classes of beneficiaries (my spouse, or contingent beneficiaries all of my children at time of death, in equal shares) or a bare trust would allow you to name John Smith 50%, Jim Smith 50% etc.)

Contact the provider and tell them what you wish to do.

The benefit is paid to the trust on receipt of a death certificate. There's no 31 day wait and no probate or administration.

dummydaydream

kingstreet wrote: »

First, death in service cover is written under irrevocable trust and does not pass into the deceased estate, so that won't add to any Inheritance Tax liability.

Onto your personal cover. Life offices have a number of standard trust forms you can choose from to put and existing policy into trust. A discretionary trust would allow you to have classes of beneficiaries (my spouse, or contingent beneficiaries all of my children at time of death, in equal shares) or a bare trust would allow you to name John Smith 50%, Jim Smith 50% etc.)

Contact the provider and tell them what you wish to do.

The benefit is paid to the trust on receipt of a death certificate. There's no 31 day wait and no probate or administration.

Thanks so much for the info. Can't believe it's taken all this time for me to realise that we should write the life insurance in trust.

Woodland

I have been a non-smoker for over 10 years. I stopped by using an inhaler which I think contains a small amount of nicotine. I have found them quite satisfying and continue to use them as an alternative to smoking cigarrettes.

My question is: Can I (and should I) claim to be a non-smoker as I am about to take out a whole life insurance policy?

Any advice would be gratefully received.

kingstreet

You would need to ask your chosen provider.

There is no generic answer to your question.

If have a Bright Grey application in front of me and it asks;-

"Have you smoked in the last twelve months?

A smoker is anyone who has used any form of tobacco or nicotine replacement products in the last twelve months.

If you answer no, we may carry out tests to check that you're a non-smoker."

So it's essential you answer your provider's questions honestly, so you don't risk invalidating any claim.

A protection specialist or IFA would be able to establish if any provider will treat you as a non-smoker and reduce your premium as a result.

DJBenson

Can anybody shed any light on how someone like me can get life insurance - I'm 33 and have had rheumatoid arthritis for over ten years, and also had two episodes of pulomary emobolism (blood clots on the lungs). My last episode was 4 years ago, but as a result I am on warfarin for the rest of my life.

Every insurer I've been to (including LV, Cavendish, BeagleStreet and may many more) have declined to insure me.

Are there any specialist insurers/brokers I can approach for cover? I can't believe at the age of 33 I am uninsurable

kingstreet

A specialist protection broker would know which specialist providers to approach.

heresdeb

I took out a level life insurance with Avia and have just recently been diagnosed with terminal Lung Cancer. I have terminal cover on my insurance but, was unaware that I could only make a claim if my policy had 18mths left to run and was going to die within 12mths. I have 13mths left on policy and can not tell them if I will die within 12mths. As I only have just over a year left on my policy, it looks as if I wont even be able to leave anything for my family. I also can not take out another insurance as I wouldn't be able to put down any existing illness.

Lapadore16

My husband has no life insurance and he is 76 in April 2015. It was something he never bothered with over the years and now I need to find out the best way to cover him either with a pre-paid funeral plan or a whole of life policy.
I wanted advice on which companies would cover him but not at astronomical premiums. I am some years younger than him but although it is not certain that he would go first, I would feel better financially if I could give him a good send off.
Hope somebody can advise.
Thanks.

kerry13238

Lapadore16 wrote: »

My husband has no life insurance and he is 76 in April 2015. It was something he never bothered with over the years and now I need to find out the best way to cover him either with a pre-paid funeral plan or a whole of life policy.
I wanted advice on which companies would cover him but not at astronomical premiums. I am some years younger than him but although it is not certain that he would go first, I would feel better financially if I could give him a good send off.
Hope somebody can advise.
Thanks.

it would depend on if he has any medical issues if he doesn't argon vitality life formally the Pru or Zurich do these.