Life Insurance

jean68

Can anyone help.
We have life insurance with Legal & General and they have sent us a letter requesting we place the policies in trust.
Has anyone else had this as we dont know if this is a good thing to do or not.
We have had the policies for many years and this is the first time we have had anything like this before.
We would be grateful for any help or advice. I was going to go to Citizens Advice but i dont know if they deal with things like this.
Thanks Jean xx

dunstonh

We have life insurance with Legal & General and they have sent us a letter requesting we place the policies in trust.

It is unusual for the provider to send such a request as it may not be required or suitable for you to do so. Normally the providers leave it to the adviser to make any such recommendation.

Has anyone else had this as we dont know if this is a good thing to do or not.

Depends on the purpose of the life assurance policy. Some ought to be placed in trust. Others should not be placed in trust as the money may not go where it is intended.

I was going to go to Citizens Advice but i dont know if they deal with things like this.

its a regulated advice issue. So, its probable you would just get non-specific generic information.

If you used an IFA then you could go back to them for advice. If you didnt use an IFA (which is likely given the mailshot you have had) then go to one anyway as chances are they will be able to beat the premium you are paying and advice you on whether a trust (and what type) is needed.

ACG

I would agree with the above, but there are more reasons on why a policy should be in trust, rather than not.

A trust is free, so theyre not trying to get more money from you. But as Dunston said, go to an advisor. Premiums have come down over the years so unless you have had any major medical issues since the policy was written, chances are you will be able to save a bit of money.