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Is it worth putting your policy into Trust?

Here at Quote for Life Insurance we can put your policy into Trust free of charge and although we can see the benefits, many people don’t know enough and therefore decide to opt out of something which could be a positive move for the future.

Having your policy written into Trust means you can make an investment for a specific person or people, basically, you can name people you want your pay out to go to. For people with children or a spouse this could be especially important. Knowing that you can protect securely protect those ones you love, could give you a great peace of mind.

The advantages don’t just stop there…Trusts can directly link to inheritance tax and pay put times. Policies written into Trust can have a quicker release time on pay outs as you won’t need to wait for Probate. This can greatly reduce financial pressures.

Inheritance tax can be a real bug bear but having a policy in Trust could change your situation.

The threshold for inheritance tax at the current time is £330’000.  This can comprise of your home, any holiday homes, cars and actually anything that you own that has a value and is therefore classed as an asset.

This is where life insurance can be really helpful if it is written in to trust.  For example, let’s say you know you have assets that will put you above the inheritance tax threshold, but you also have a life insurance policy for £20’000.  While those you love most are waiting for probate, they can gain access to your life insurance as a cash lump sum and this could really help with paying the mortgage, paying for your funeral and of course it will also pay for any debts that you may have accrued in the meantime.

Without life insurance written into trust what you’re looking at is time and if your family don’t have the finances to keep things going while waiting for probate, this could mean them having to find additional income to pay for the bills and your funeral.

While having life insurance is not an essential thing, it really could make the difference when it is written into trust.

To fully understand the benefits of life insurance written into trust we recommend you speak to an independent financial adviser who will be able to talk you through the implications and of course how it may well help those you love most during what could be a very difficult time.

If you would like a quote now why don’t you contact us for a free, no obligation quotes?