Life Assurance - Couple of Questions

bigdic

Hello,

So it's time to fill out the forms but I have a couple of questions I hope someone could help me with or point me towards a site with the answers.

On the first page it asks a question about "indexation" and "conversion", it states that you can't have both. I don't even know what these are and if I have any need for them at all can someone explain them please?

Do I want the policy held in trust??? I know the benefits (it goes straight to the beneficiaries, avoids inheritance tax etc.) but I'm just a bit concerned about how easy it'll be to change/cancel in the future as who knows what can happen in 15 years. Can anyone point me to a better explanation of holding a policy in trust?

Thanks in advance for any help.

bigdic

Bumpity Bump Bump.

Can anyone help?

witchypoo

I need help with this too - the indexation and conversion question. I have searched through Legal and Generals' site and nothing is coming up to explain what these terms mean so how can I know whether I want one of them?

I have found help on trusts in the section on this site about inheritance tax. I reckon in our case that a trust is not necessary.

hatewashingmachines

Hiya, just googled and found this:

indexed life insurance
A whole life plan of insurance that provides for the death benefit of the policy and, consequently, the premium rate to increase automatically every year in accordance with any increase in the Consumer Price Index (CPI).

witchypoo

Ah at the moment it has a guaranteed fixed premium and benefit which I think suits me better, thanks.

*edit*
I googled too now -
Q: What is a conversion option?
A: A conversion option allows you to change or convert to another type of policy. For example, you may choose to convert to a permanent type of policy that covers you until age 100. If you do so, you will not need to complete a health questionnaire or medical exam.