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Life Insurance for Veterans: Why you should put a policy in Trust

Life Insurance pays out a lump sum if you die, with the money often used to pay off a mortgage or cover rent. But how could putting your policy in a trust help your family? Learn more from this article from our specialist life partner, LifeSearch.

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From protecting your country to protecting your family – why life insurance will give you the greatest peace of mind. 

Life Insurance pays out a lump sum if you die. Designed to provide a financial safety net for your family, the money is often used to pay off a mortgage or cover rent, household bills and living costs. Our priority is to help you adjust to life on civvy street and ensure all your insurance needs are in force. 

Why should I consider life insurance? 

Family is the most important gift to protect. We insure our home, cars, pets and phones, but the people closest to us are our most valuable assets. 

  • Financial security: Life insurance provides a financial safety net for your family. It can cover daily living expenses, mortgage payments, and future financial needs, ensuring your loved ones maintain their standard of living. 
  • Pay off debts: Life insurance can help pay off outstanding debts, preventing your family from being burdened with these financial obligations. 
  • Estate planning: An integral part of your estate planning, it can help manage taxes and ensure your assets are distributed according to your wishes. 
  • Maintaining lifestyle: A life insurance payout can release the financial burden of mortgage or rent payments, and the money can instead contribute to supporting the everyday costs of living 

Who needs life insurance?  

If you’ve got a family you want to protect when you’re no longer around, then it’s a good idea to have a think about life insurance. Here’s a few key questions to ask yourself: 

  • What would happen if my family lost my income? 
  • Who would pay the mortgage or rent? 
  • What money would be used to pay the everyday bills? 
  • What changes would they need to make financially? 
  • Do we have savings that could support my family if I wasn’t around? 

What are the benefits of putting a policy in trust? 

A trust is a legal agreement which helps people manage their finances. Most people have a will, but trusts can come in handy too, especially if you have a life insurance policy which will pay out a lump sum of money when you die.  

Writing your life insurance in trust means that even if your estate is subject to inheritance tax, you can leave behind some money that is just for your loved ones.  

  1. Reduce your inheritance tax bill – When a life insurance policy is placed in trust, the payout is generally not considered part of the policyholder’s estate for inheritance tax purposes. This can significantly reduce the tax burden on those benefitting from the payment. 
  1. Speed up the payout for a life insurance policy – when in trust, the payment can be settled sooner as trusts can help bypass the probate process, which can be lengthy and costly. The proceeds from a life insurance policy placed in trust can be distributed more quickly to the beneficiaries. 
  1. To give your family control and confidentiality – without a trust, your life insurance will form part of your estate, so the money could be used to cover any debts. When in trust, it is protected from this, and the payout goes to the intended recipients. 

Trinity’s specialist life insurance partner  

LifeSearch are Trinity’s specialist partner, offering veterans fee-free, expert advice and quotes for Life Insurance, Critical Illness Cover, Over 50s Cover and Income Protection. 

Chat to an expert, who can provide personalised advice and help navigate any pre-existing conditions or queries you may have as a veteran about protecting yourself and your family.   

A £50 Donation To A Charity Of Your Choice 

As a Veteran-run business, we’re passionate about giving back so once you’re protected, LifeSearch will donate £50 to a military charity of your choice*.