Buying Life Insurance? One tip to save you £thousands!

 It's simple, always have your Life Insurance policy "Written in Trust". This may sound technical but it is easy to understand and it's so easy to organise. "Written in Trust" ensures that in the event of a claim, the policy will pay directly to the beneficiaries you name on the policy when you first take it out. If you do not do this, the policy will payout to your legal estate and this inevitably means that the money stays in your solicitor's hands for some time. Yes, that implies legal delays and, of course, your solicitor takes a small cut! Then, if the value of your taxable estate exceeds £275,000, and remember your home can easily account for the lion's share of the £275,000 limit without much difficulty, your estate will have to pay Inheritance Tax. This represents 40% of the estate's taxable value in excess of £275,000. So, if your estate has to pay Inheritance Tax and the proceeds of your life policy go to your estate, the taxman gets his hands on 40% of your life policy! But it's so easy to avoid all these problems. Simply get your policy "Written in Trust". Then the life insurance company pays out immediately, directly, and totally tax-free, to the persons you have named on your policy. All you have to do is tell the online brokerage organising your policy that you want your policy "Written in Trust" and they will automatically sort it out for you. This advice remains sound even if the policy is designed to pay off your mortgage. Rather than your estate using the insurance payout to pay off your mortgage, the policy can be written in trust and paid to your partner and then he or she can use that money to pay of the mortgage. The benefit? Well if your taxable estate exceeds the IHT threshold the mortgage is effectively paid off tax-free. The extra good news is that all the brokers we've met will arrange for your policy to be "Written in Trust" as a free of charge service. So it's a win win situation and there aren't many of those around these days !
About the Author

Michael Challiner has 15 years experience in financial services marketing at senior level. Michael now works as the editor of Scrouge Life Insurance on behalf of Andromeda Webs Ltd

Futher reading Life Insurance what is it ?

 Michael Challiner

More Articles 

Life Insurance - Helpful Tips For Getting A Cost Effective Policy - Dean Shainin
Copyright 2005 Dean Shainin Many things factor in with getting a cost effective life insurance quote and policy. It is wise to take some time out and do some important research first. With online access, it is much easier today than it used to be....

Can I Really Get Life Insurance, No Exam Required? - Peter Crump
Term life insurance policies provide a limited coverage period, which is determined by the policy owner. Term life insurance rates are actually the cheapest form of life insurance, but there are different rates for different people. This is because...

The Ins And Outs Of Auto Insurance - Dr Drew Henry
Bodily Injury Liability, Collision, Comprehensive, Property Injury Liability. Do you know what these terms mean? If you are currently paying for any type of auto insurance, then these are some terms you should know to maximize the benefits of...

Shopping Online For Car Insurance - Scott Patterson
Right now there are many companies all trying to get you to buy their particular insurance plan for your car. From quacking ducks to talking lizards, there is an overabundance of advertisements, all done with the intent to get you sign up...

Insurance settlement - Jakob Jelling
Things you should keep in mind about your insurance settlement. It's the one thing that everybody hopes they won't have to deal with, but sometimes you have to hope for an insurance settlement. Most people dread this situation because of the number...

Do You Know What The 7 Home Insurance Plans Are? - Tim Gorman
Most people don’t realize that there are 7 different homeowners insurance plans that insurance companies can offer. Each plan is different from the other 6 based on the circumstances that it covers. Additionally if consumers are familiar with any of...

Moneynet promotes greater financial understanding for consumers with new life insurance product guide - Moneynet
Moneynet.co.uk, the UK’s most established personal finance research and data website, has published the latest edition in its series of online product guides to help consumers get to grips with the increasing complexity of personal finance products....

How To Lower Your Car Insurance Costs Once And For All! - Dr Drew Henry
With fuel costs escalating out of control these days, car running costs are becoming a serious burden for the average family, especially families with more than one car. Because of this reason more and more people are looking for ways to...

Everybody Wants The Best Term Life Insurance Quote - Peter Crump
The information you need about the best term life insurance quote is only a click away when you search for term life insurance online. You don't even have to know anything about the insurance industry to get the best term life insurance quote from...

A Buyer's Guide to Medical Insurance - Johnny Mangiante
Buying travel health insurance can be a complex task. There are so many different plans - each with different benefits and restrictions. It is important to shop wisely for trip insurance. Many people buy coverage that seems inexpensive only...

Choosing the Best Life Insurance Option for You - Claire Bowes
Life insurance in the UK is becoming more and more popular with many people now realizing the importance and the benefits of a good life insurance policy. There are two main types of popular life insurance, both of which offer a range of...

Pet insurance - Not only is it inexpensive, but it can save you a bundle. Read and find out why you can't afford not to have a pet health plan. - Dean Cecere
Pet insurance has been and still is a growing concern with pet owners alike, due to the increasing amount of necessary trips to the veterinarian. Some of these trips can be extremely expensive depending on the reason for your visit. Routine check...