What Is a Life Insurance Trust - Avoid IHT & Speed Up Payouts
TL;DR
What is a life insurance trust - protect your family's inheritance. Expert UK guidance on trusts for life insurance policies.tax planning in some cases. Whether you should use a trust depends on your family setup and objectives.
This guide explains everything you need to know about this type of cover, including how it works, what affects the cost, and whether it's right for your situation. Our FCA-regulated advisers can help you compare options from leading UK providers.
Key Points
- Beneficiaries receive money tax-free to cover bills, mortgage, or living costs
- Level term pays the same amount throughout the policy
- Whole of life premiums are higher but cover lasts forever
- Mortgage life insurance typically uses decreasing term
Who Is This For?
Life insurance is particularly important if you have a mortgage, dependants, or anyone who relies on your income. If your death would cause financial hardship for others, life insurance provides essential protection.
Next Steps
Our FCA-regulated advisers can help you find the right life insurance policy for your circumstances. We compare the whole market to find cover that fits your budget and protects your family.
Frequently Asked Questions
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Content reviewed: January 2026
CeMAP awarded by The London Institute of Banking & Finance. Cert CII (MP) awarded by the Chartered Insurance Institute.