Wouldn't it be nice to know that in the event of your death that your family would receive a tax-free income?

Family Income Benefit is a form of term assurance in that you select the date when benefits are to cease eg. when children leave University, and you select the amount of tax free cash you would like your dependents to receive. On death, benefits are payable by instalments until the ceasing date.

An insurance often used for inheritance tax planning is:

Gift Inter Vivos Insurance

This type of policy is designed to provide cover against inheritance tax if an individual makes a potentially exempt transfer (a gift) of assets out of their estate. If such a gift is made then one has to survive for seven years for it to be outside of the estate for inheritance tax purposes. If you should die in the meantime then there is a tax to pay over the period according to the percentage level dictated by legislation, which is on a decreasing basis between the date of death and the seventh year. Other features include:

• It is a fixed term seven-year period.
• The sum assured under the policy reduces in line with the reduction in inheritance tax liability.
• The sum assured is only payable upon death during the term.
• No surrender value is associated with the policy.

You may also wish to consider critical illness insurance. For further details, click here.