Life Insurance for IHT
If you are thinking about cost effective way to cover the pottential Inheritance Tax Liability (IHT), then life insurance is a really good option to consider.
What is Life Insurance for IHT Planning?
Life insurance for Inheritance Tax (IHT) planning is a strategic financial tool that helps your family avoid large tax liabilities when you pass away. If your estate is above the IHT threshold (currently £325,000 in the UK — or more with certain allowances), anything over that is taxed at 40%. A properly structured life insurance policy can cover that tax bill — so your family don’t have to sell property, businesses, or investments to pay HMRC.
1
Why is this type of cover important?
Your family shouldn’t have to sell the house to pay the taxman.
Most HNW families have wealth tied up in property or business shares. When you die, your estate can be hit with a large tax bill — often due within six months. Life insurance can pay that bill directly, so your loved ones inherit assets, not admin headaches.
2
Think of it as an IHT buffer: you’ve worked hard to build something. You want it to pass on cleanly. A life policy placed in trust ensures quick payout, tax efficiency, and control over how and when the money is used.
It protects your legacy — not just your life.
3
Even a large IHT policy can be surprisingly affordable when compared to the tax burden it offsets. And with the right advice, we can structure it outside your estate, so it doesn’t increase your IHT exposure further.
It's often cheaper than you think.
FAQ
Albatross Healthcare Ltd is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 1024739. Registered Address: 101 Woodpecker Way, Shepshed, Loughborough LE12 9WF. This e-mail and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this e-mail and any attachments in error please notify us by sending an email to k.alba@albatrosshealthcare.co.uk immediately and delete this e-mail and any attachments from your system. If you are not the named addressee you should not disseminate, distribute or copy this e-mail or any attachments. If you are not the intended recipient you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited