AIG has added family income benefit (FIB) to its product range for British expats requiring protection insurance for their UK financial liabilities.
The product has been designed to cater for customers who live abroad and have regular UK financial commitments such as paying for a child’s school or university fees, or a relative’s long-term care.
It joins a range of AIG products available to British citizens living in other countries, alongside Key three, Life Start and CIC Start.
AIG Life has also created a simple web-based information tool to help intermediaries identify if their non-UK resident clients can buy AIG’s protection insurance, alongside a list of relevant products and options.
Any client-specific information will still need to be assessed by AIG’s underwriters upon application.
AIG announced in April it could offer intermediated protection insurance to British expats living almost anywhere in the world and foreign nationals living in over 40 countries, provided they have a UK financial interest.
It followed HM Revenue & Custom’s plans to create an inheritance tax liability on non-UK domiciles holding UK residential property via an offshore company or trust.
The legislation - referred to by AIG as ‘IHTED’ (for inheritance tax on enveloped dwellings’) - was put on hold ahead of June’s general election but is set to be readmitted via a summer Finance Bill, which is expected to be given royal assent when parliament is in session again from September.
Once the legislation takes effect, it will create billions of pounds worth of IHT liability for the beneficiaries of affected individuals and is expected to be applied retrospectively from 6 April 2017.
Andy Roberts, technical sales manager of AIG, said: “The IHTED legislation was expected to have been signed into law by now, but politics got in the way.
“By opening access to more products and tools now, AIG is making sure intermediaries have everything they need to support international clients who need financial protection now or who could soon be affected by IHTED.”
simon.allin@ft.com
