If your life insurance policy is written in trust then, in the event of a claim, the insurance company pays out directly to the beneficiaries you name on the policy.
The significance of this can be easily missed...
If your life insurance policy is "written in trust", the proceeds from the policy never form part of your legal estate and so are not currently subject to
Inheritance Tax. That means that it is your loved ones that receive the benefit of your insurance cover, not the tax man. |