Life Assurance
Another method of paying your IHT bill
Sometimes, despite all other methods of trying to eliminate or reduce IHT, there is no option but to simply insure the liability taking out life insurance to cover the cost of the tax bill that your heirs will have to pay when you die. There are two options of life policy - Whole of Life and Level Term Assurance.
A Whole of Life policy has a sum assured which is paid to the beneficiaries on death. It is written under trust and it will not be added to your estate as the money in the trust doesn’t belong to you - it belongs to the trustees whom you choose. It can be paid before the rest of the estate is released which means that your beneficiaries don’t have to wait until probate for it.
Level Term Life Assurance is designed to provide a lump sum in the event of death during the term of the policy. You can choose the amount of cover that you want and the term so you can ensure your family could potentially settle or continue payments on a mortgage, or other debts, and also maintain their standard of living. If you die during the policy term your insurer will pay the amount you are covered for and if the policy reaches the end of its term, and you have never needed to make a claim, the cover ceases and the policy has no value.
For more information about Life Insurance simply call on of our dedicated team on 0800 137 832.
To find out more about any of
the services we’ve mentioned
simply:
- Contact your SFS Financial Adviser
- Call a member of our Client
Help Line on 0800 137 832 - Visit your local Skipton
Building Society branch to
arrange an appointment with
an SFS Adviser
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