Life Insurance

OshayAway

Most brokers would also put your plan into trust FOC. It means the benefit will be paid where you want it to, outside of your estate and more quickly as well.

kingstreet

If you write a life policy "own life-own benefit" the proceeds of the policy go into your estate and increase any liability to Inheritance Tax. The proceeds are then only distributed according to your will, or intestacy, and will have to wait until probate or administration is completed.

Writing such a plan in trust means;-

- you name your beneficiaries at the outset and can change them later
- the proceeds are paid quickly as there is no wait for probate
- the proceeds avoid your estate and do not add to it for IhT purposes.

So, the money goes where you want, quickly and the taxman doesn't get a slice!

fullmoon_2

OshayAway wrote: »

Aviva don't have flexibility options (GIO) as I referred to in my post. See how much the next cheapest is.

Are you using a broker? They should be explaining this stuff to you.

Legal & General £18.34/month. Have flexibility option.
I am not using any broker, on my own.