The benefits of a Whole of Life policy

Anyone who has seen the latest IHT statistics would know the importance of inheritance tax planning.

With IHT tax receipts expected to rise to £5.4bn by 2020/21, inheritance tax planning continues to be a priority area to review with clients. With no IHT policy in place, your client could be leaving their family with a considerable financial burden.

One of the simplest ways to ensure your client’s heirs are covered for this liability could be to use a Whole of Life policy. As you can guess by the name, a whole of life policy covers your client for the whole of their life and means the sum assured will be payable when your client dies or if they’re diagnosed with a terminal illness during the life of their policy.

Premiums are also not as expensive as one might think and are a more cost-effective option than saving. According to a recent FT Adviser article*, an analysis of HMRC receipts by NFU Mutual found that the average IHT bill in 2018/19 was £198,852. Based on this, a Zurich Whole of Life policy with a sum assured of £200,000 would cost your client around £239 a month**.

Setting up a whole of life policy would also provide your client’s heirs with the liquid assets they need to cover the IHT liability. This means they wouldn’t need to turn to other products, such as investment and savings accounts, to settle the bill.

To find out more, please visit the Zurich Intermediary website or call your Business Account Manager.