Protecting your clients’ protection
Putting protection policies in trust is a great way to make sure your clients’ loved ones or business is protected. Our guide explains why you should set up a trust for your client, the different trusts we offer, and how to set one up using our online trusts or paper forms.
Trusts make sure the money goes to the right people at the right time.
Trusts exclude life insurance benefits from probate, so the money can be paid quicker.
Reduced inheritance tax
The money paid out won’t pay into your client’s estate, which helps to reduce any potential inheritance tax bill.
Protects those who are most important
Your client can nominate the beneficiaries they want.
|Type of Trust||Reason for cover||Available for Single/Joint plans?||Change beneficiary?||Online access||Who benefits?|
|Flexible||Personal||Yes||Yes||Single life policy only||Your client names default beneficiaries who are first in-line to receive the benefit. The trustees can also use their discretion.|
|Discretionary||Personal||Yes||Yes||Single life policy only||The trustees have discretion over who will receive the benefit, but specific guidance can be provided in a letter of wishes.|
|Survivors||Personal||Joint life policy
|Yes||Yes||The surviving life insured will automatically receive the benefit (if they survive the first to die by 30 days).|
|Relevant Life Plan||Relevant Life Plan||Single life policy only||Yes||Yes||The trustees have discretion over who will receive the benefit, but specific guidance can be provided in a letter of wishes.|
|Business Protection||Share Protection Key Person||Single life policy only||Yes||Yes||The co-business owners.|
|Absolute||Personal||Yes||No||No||Your customer names the beneficiary at the outset and it cannot be changed.|