PROTECT YOUR CUSTOMERS

"The right thing to do benefits you AND others. Be the lighthouse that you are."

 
 

AMI Protection Viewpoint 2024 is here…

53% of consumers think Income Protection is importent but only 7% have it.

TRUSTS.

A trust is a legal arrangement. It allows the owner of property (the settlor) to transfer legal, and/or beneficial, ownership of that property to other persons or a company (the trustees). The person or company receiving the property holds onto it for the benefit of third parties (the beneficiaries).

AIG are one of our many providers has created a guide explaining how trusts work for Protection policies. Click here to download the online guide.

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By placing your client’s protection policy in a trust, they can benefit from:

  • Better control – Trusts make sure the money goes to the right people at the right time
  • Faster payments – Trusts exclude life insurance benefits from probate, so the money can be paid quicker
  • Reduced inheritance tax – The money paid out won’t pay into your client’s estate, which helps to reduce any potential inheritance tax bill
  • Protects those who are most important – Your client can nominate the beneficiaries they want

How do trusts work?

Writing a protection policy in trust means the right people receive the right money – at the right time.

  • The settlor gives the policy to trustees.
  • It’s usually best practice for the settlor to also be a trustee.
  • The trustees would make a claim and pay the proceeds to the beneficiaries.
  • Usually for Business Protection the trustees are the business owners, but for Relevant Life Cover they would also include family member, or close family friends for example.
  • Trustees can be changed through the insurance provider – this must first be agreed by all other trustees.
  • The settlor selects the trustees – there should be a minimum of two in addition to the settlor for all cases.
  • Trustees legally own the policy and look after it on behalf of the beneficiaries. 
  • Trustees must be over 18 years of age (or over 16 years of age in Scotland), and be of sound mind.
  • For business protection cases that need to be written in trust, the trustees are usually the shareholder or partners within the firm.
  • If a trustee dies, a replacement may be needed. 

To find out more about trust download our Trusts protection table and click on each of the logos.

Download the TMA trusts product table

AVIVA

  • Business Protection

AIG

  • Income Protection
  • Business Protection

THE EXETER

  • Life Protection

HSBC LIFE

  • Life Protection
  • Critical Illness

LV=

  • Business Protection
  • Online Trusts

LEGAL & GENERAL

  • Life Protection
  • Business Protection
  • Critical Illness
  • Online Trusts

ROYAL LONDON

  • Life Protection
  • Business Protection

SCOTTISH WIDOWS

  • Life Protection
  • Business Protection
  • Critical Illness

VITALITY

  • Income Protection
  • Business Protection
  • Critical Illness

ZURICH

  • Split Trusts

SPEAK TO US ABOUT PROTECTION

Our friendly, expert Broker Support Team are here to assist with all of your Protection questions and enquiries. If you’re already a TMA member and have a query about any of our services or tools, they’re here to help!

Give them a call on 0330 303 0236
or
use our quick call-back form for a call from your Key Account Manager.