Life insurance in a changing planning landscape
| Life insurance can provide an effective solution when planning for a future Inheritance Tax bill | When written in trust, policy proceeds will generally sit outside the estate and can often be paid quickly | Reviewing your position can help ensure cover is affordable, well-structured and in line with your wider estate plan |
One of the most significant upcoming changes to the financial planning landscape, the inclusion of pensions within the Inheritance Tax (IHT) framework from April 2027, is prompting many to reconsider how different assets fit within their broader estate planning strategy.
Depending on your personal circumstances, life insurance may have a role to play…
The role of life insurance
Life insurance can provide an effective solution when planning for a future IHT bill. A policy can create a lump sum that beneficiaries may use to meet tax liabilities, helping to avoid the need to sell property, investments or other family assets.
When written in trust, policy proceeds will generally sit outside the estate and can often be paid quickly, providing valuable liquidity at an important time.
Why early planning matters
Leaving planning too late reduces the available options and may lead to higher premiums or even limited insurability later in life. Reviewing your position sooner can help ensure cover is affordable, well-structured and in line with your wider estate plan.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.
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