Generally speaking, a life insurance payout will form part of your Estate (the total assets you leave behind once you pass away). After outstanding debts and liabilities are paid, your Estate is usually distributed to your next of kin, or as per your expressed wishes in a valid Will.
Alternatively, you can put your life insurance policy into a Trust. By doing this, a payout would bypass your Estate and instead go direct to your chosen beneficiaries. Protect Line will help you set up a Trust, for free, when you purchase a policy with us.
The beneficiaries in a Trust can be anyone you like, related to you or not. For an underage child you can specify that they only get access once reaching a certain age, or leave the money to a guardian for the purpose of the child’s upbringing.
If you have Protect Line’s Over 50’s Non-Medical Life Insurance, you can opt to have the payout go direct to an eligible funeral director. If this option is chosen you will receive a free £300 contribution towards the cost of your funeral*. Ask our team for more information.
Life insurance payouts do not just have to go to family or towards funeral costs. You could organise for some or all of your life insurance payout to go to your favourite charities. This is a fantastic way to leave a legacy and benefit multiple lives for years after you have gone.
Trust planning is not regulated by the Financial Conduct Authority. Inheritance tax planning is not regulated by the Financial Conduct Authority.