Aegon UK has launched a whole-of-life policy that will also address issues of inheritance tax for wealthy clients.
Dougy Grant, protection director at Aegon UK, said: “Inheritance tax can cost those left behind thousands of pounds’ worth of additional heartache, yet there are ways to make provisions for this – such as writing life policies in trust – which we estimate is being done in only 10 per cent of cases. Our whole-of-life policy is one way to address this.”
Key features:
■ The policy helps to reduce the amount of tax that would have to be paid from the estate, so more can be passed on to the beneficiaries.
■ The policy carries free cover in trust, so if a client is eligible for free cover and his adviser uses Aegon’s integrated trust process, their free cover will also be placed in trust.
■ Built in flexible options – a range of guaranteed insurability options and a ‘gift inter vivos’ conversion option – so cover can change with client circumstances.
■ Joint life separation option – this means that if a policyholder were to divorce or dissolve a civil partnership, they could split the joint policy into two single-life policies.
Adviser verdict
Tom Conner, director at Brighton-based Drewberry Insurance, said: “When you have a lot of joint life policies, such as a mortgage plan, it pays out when the first partner dies. But here, when the second partner dies, this will pay out on the second partner’s death to help the beneficiaries.
“For those who are wealthy, this is a popular type of product.”
