Inheritance Tax Life Insurance

Inheritance Tax Life Insurance is designed to pay out a lump sum on death
to cover a possible Inheritance Tax bill.

- Single or Joint Life Second Death options
- Free trust service saving you thousands in probate and tax costs
- Fixed monthly premium options
- Guaranteed pay-out on death
- Compare the top UK insurers in seconds

Compare Inheritance Tax Life Insurance Quotes from leading UK insurers including….

Compare quotes from leading UK insurers including…

family-aegon     family-AIG     family-lv     family-aviva     family-legal-general     family-vitality-life

Inheritance Tax and Life Insurance

 

Inheritance Tax is levied on the estate of a deceased person following their death. A person’s estate can include their property, money, cars and other possessions, as well as the proceeds of a Life Insurance policy.

IHT won’t usually be payable if the value of the estate is below the Nil Rate Band (NRB) of £325,000 or if you leave everything above the threshold to your spouse or civil partner, or to an exempt beneficiary such as a charity.

However, if the value of your estate is more than £325,000 and the above situations don’t apply, the part of your estate above the threshold could be liable for IHT at a rate of 40%.  By writing your life insurance policy in trust the pay-out will go directly to your beneficiaries, rather than forming part of your legal estate and thus no IHT will be due.  Writing your policy in trust also means the pay-out will reach your loved ones much quicker as it bypasses probate – the legal process of sorting out a deceased person’s estate.

Inheritance Tax must be paid before your loved ones will be able to access your estate when you die and as a result, they could be forced to stump up thousands of pounds in one go.

If you know that your beneficiaries will be liable for Inheritance Tax when you die, you could take out a  Whole of Life Insurance policy to cover the full amount of the Inheritance Tax bill. Whole life insurance policies will pay out whenever you die, rather than within a specified term (as with term insurance).

Again, to avoid the proceeds of the policy incurring Inheritance Tax, your whole life insurance policy must be written in trust. Keep in mind that the premium paid for the policy will also help to reduce the value of your estate which can further reduce the amount of Inheritance Tax due when you die.

Benefits of Inheritance Tax Whole of Life Insurance from SaveOnLife

 

- Guaranteed pay-out on either first or second death basis for Joint policies
- Free trust service meaning no Inheritance Tax liability and you can save thousands in probate charges
- Independent comparison of leading UK providers to get you the best deal
- We do not charge you any fees for our service
- Expert help and guidance ever step of the way
- Authorised and Regulated by the Financial Conduct Authority and protection from the Financial Services Compensation Scheme

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“Very good, gave me a good choice to choose from. I chose the life insurance that would suit me” Sarah Fuller, 05/06/2021
“Very fast and simple process
I’ve looked to buy life insurance online for a while and had been to a few sites but the long process put me off. Save On Life’s process was very quick and simple so very happy after finally putting some cover in place!” Nicole, 03/02/2021
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I decided on sun life because of the simple straight forward method of securing a plan and the result of doing so, including all the expected relevant information required to ease the path.” Ian McDonald, 31/01/2021
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