The head of account development at provider PruProtect said that whole-of-life sales may increase following chancellor George Osborne’s Budget statement, in which the government removed the requirement to purchase an annuity.
Mr Jeynes said: “One of the outcomes from the new annuity rules is that many people could have more cash in their estates when they die, creating a need for IHT planning.”
He said while whole-of-life plans have been a traditional way of solving IHT issues, the “interesting challenge” would be whether or not people take them before they retire or at the point of retirement.
Mr Jeynes added: “The later it is left the more expensive it becomes.”
Roy McLoughlin, partner at London-based Master Adviser, agreed that IHT risks may increase as people take their cash early.
“There are a few potential outcomes for protection arising from the recent Budget,” he said.
“We could see some annuity providers expanding their protection offerings to keep things ticking over while the retirement market works itself out.”
He added: “No doubt, we will also see some new-style retirement products in time, but not quite yet.”
