Legal and General life insurance introduce online trust
Legal and General have launched an online trust application platform for both customers and advisors to use. It provides an online solution when writing business protection policies and relevant life cover into a trust.
This online platform is a simple process which allows customers and advisors to set up the trust online, rather than have to deal with lots of paperwork and getting signatures. It means that the trust is in place as soon as the policy application is complete. The introduction of the system creates a smooth, easy process for both customers and advisors when obtaining legal and general life insurance. The Legal and General life insurance hub is available for life assurance, terminal illness cover and critical illness cover. Using the trust doesn’t come at an extra cost. It’s easy to use and a great way to quickly protect your family.
Benefits of an online trust platform
Legal and General’s online trust application now takes no more than a few minutes to complete and has removed the need for signatures. Printing trusts and sending them off can be one of the most time-consuming parts of setting up a life insurance policy. Therefore, removing this from the process allows the trust to be set up sooner, without a lot of hassle for the client.
The solution also allows for more flexibility for the customers. They have more options to split the payments. For example, if they were to suffer from a critical illness, you can take some out and leave some in the mix.
Customers now have the ability to choose product options without the permission of the trustee. For example, they can choose to remove the indexation option. Customers, or advisors on their behalf, can choose how many trustees they want, and the beneficiaries all within the online platform.
An easy process
Once advisors complete your life insurance application, they can proceed with completing an online trust. There are also 5 types of trust available online depending on which policy you’ve taken out. In addition to this, there are pre-chosen groups of beneficiaries that you can pick from without any names being needed. However, you still have the option to add in the names of your chosen beneficiaries if you wish. Customers can make changes right up to the policy start date.
Why customers should think about a trust for their life insurance
Putting your life insurance in a trust can help to protect your loved ones or business. It means you have more control over where your money goes.
Money from a life insurance cover that isn’t written into a trust is included as part of your estate. Therefore, it is not only subject to inheritance tax but also means if there is no will in place, the distribution of the money is subject to the rules of intestacy. If you’re not married, then it can mean your partner misses out. If you do have a will in place, your beneficiaries are still likely to pay inheritance tax on the policy.
Save on inheritance tax
By writing your policy into a trust, your family are not eligible to pay inheritance tax on the cash sum. This can ensure that your family receive more of what you intended to leave for them. In addition to this, it can help to counteract any inheritance tax paid on the estate reducing their overall tax payments.
In the event of a death, it can take a while for finances to be distributed from the estate. With a life insurance plan written into a trust, you can avoid the probate process which means your family can gain access to financial support a lot quicker.
Control where your money goes
With a trust for your life insurance policy, you can have complete control over who receives your life insurance payout. In addition to this, you can pick the percentage of the money you would like each person to receive. It means your family get the money at the right time and you decide who gets what.
With the introduction of Legal and General’s online trust platform, customers can now benefit from an even faster trust application process. With no signatures involved and more freedom for the customer to decide how they want their money distributed, it can really help to create a seamless trust process.
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