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Hi, how can we help?Will my family have to pay tax on the life insurance payout?
Life insurance is tax-free in that a payout is not subject to income tax. However, a payout can form part of your Estate and, if your total Estate is valued at over a certain threshold, the recipients could be liable to pay inheritance tax on some or all of the payout.
Protect Line offers a complimentary Trusts service to all customers. By putting your life insurance policy into Trust any payout would not form part of your Estate, meaning it could avoid inheritance tax.
Trust planning is not regulated by the Financial Conduct Authority. Inheritance tax planning is not regulated by the Financial Conduct Authority.
All help centre articles are designed to help give generic information to UK consumers. Protect Line operates on a non-advised basis, so no help centre article should be considered as advice or an indication of the terms and conditions of your policy. Insurers also update their terms and conditions from time to time and while Protect Line endeavours to keep all information up to date, there is a chance the information on these pages may become outdated. All information is correct at the time of publication. To ensure you fully understand the terms and conditions of your policy please read all your documents and contact us for clarification if there is something you do not understand.
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