Advisers want easier way of writing insurance in trust
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Advisers have called on providers to make it easier to get more protection policies written into trust through simpler language and wider use of online trust systems.
Writing policies into trust ensures that when a policyholder dies, the money is paid to the chosen beneficiary. It means the payout from a life insurance policy is outside a client’s estate and so reduces inheritance tax liabilities. It also means money can be paid to the beneficiary quicker.
Lifesearch senior policy adv-iser Matt Morris says that while many providers offer good online application systems for protection policies, only Ageas Protect and Friends Life offer the same online systems for putting policies in trust.
He says: “More insurers need to offer a quick and easy online process to add a few customer details so that a policy can be written into trust. Two insurers are already doing this so it cannot be that complex. A tickbox facility on the application form, which links to a few simple questions about who they want the money to go to would also be very useful.”
Highclere Financial Services partner Alan Lakey says: “Advisers need to raise the issue more but companies also need to make it easier. The use of arcane legal language in trust forms is intimidating for both clients and advisers.
“If certain legal language has to be retained, there should be a simple guide that clients can be given along- side the trust form to explain the jargon.”
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