American insurance firm AIG Life has upgraded its term assurance service by offering coverage for customers’ inheritance tax (IHT) liabilities.
The company has launched the new Joint Life Second Death (JLSD) option. It aims to ease the tax burden of couples who plan to erode their IHT liability by a specific age through gifting assets.
Policyholders can also avail a ‘gift inter vivos’ plan from the existing sum assured. This covers reducing IHT liability on gifts made over the insurance term without the requirement for further underwriting.
Lowering the minimum term
In order to tend to individuals investing in business relief-qualifying schemes, the company has lowered the minimum term to two years. Joint applicants can also avail the two-year term on a JLSD basis.
AIG Life technical sales manager Andy Roberts said: “Using life cover for inheritance tax planning is not always as simple as taking out a Whole of Life policy and then forgetting about it. Financial advisers proactively help clients reduce their liability over their lifetimes and the developments we are announcing today dovetail with that approach.”
AIG Life chief pricing actuary (intermediary) Anna Graham said that the new enhancements are intended at making IHG affordable and accessible.
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“People who do inheritance tax planning have a right to affordable life insurance because they are doing something positive to benefit their families and loved ones. We have worked hard to keep the customer in mind when pricing these new Term Assurance options,” Graham noted.