Life insurance - Named beneficiary or trust?

everfor007

Few year ago i bought my life insurance through aviva and in my policy given my partner name as benefinary and i am paying the premium through DD from my limited company.

 My wife is also director in my limited company, now i am trying to buy new policy for my wife and my wife want to put my name as benefinary. LV agent sent my trust form in that stated, trust is appointed under my limited company and in that form mentioned to add my named under benefincary and also witness need to sign and also mentioned in the event claim, it might have charges from solicitor..

 is it mandatory appoint to trust? i've asked to LV agent, aviva hasn't asked such trust detail, just taken name beneficiary, he saying it's manadatory as payment paying through limited company and also i asked in future if she come out from limited company, and making the premium payment through her personal account and he saying at that time, we need to inform to LV and they'll update inthe policy but now to start the policy they need trust details otherway they can't start the policy. And also informed both of us, written the joint will and covering each other, still asking to appoint to the trust.

 Any advise, is it correct approach what agent is asking?

DullGreyGuy

Others much more qualified will answer before too long. When bought my Relevant Life Insurance I got the normal Life Insurance explanation that by writing it in trust it means the settlement is never part of your estate and as such will never be considered for inheritance tax.

I wasn't told it was mandatory but just sensible to do so.

You mentioned an LV Agent... who have you gotten your quote from? As a general rule of thumb independents are no more expensive and can be notably cheaper than tied agent no matter how counter intuitive this may seem at first glance.

kingstreet

Are you talking about Relevant Life, or have you paid premiums for a normal term assurance from the business account?

If it is Relevant Life, it is cover taken out by the company on the lives of its employees for family protection so there should be a trust settled by the company with the employee as the life assured and the family member as the beneficiary.

I'm working on a husband and wife RL case at present. Two RL apps, one for each of them and a trust for each app.