Gift Inter Vivos Insurance – case study
We were contacted by a gentleman who asked us for information and quotes for Gift Inter Vivos Insurance.
He told us that his father will reach his 82nd birthday later in the year and has decided to gift the majority of his estate to him. The gift is valued at £1.3 million, meaning there could be a potential inheritance tax liability of £540,000. The clients require a life insurance policy for the father which will cover any potential IHT liability.
The most cost effective policy is a Gift Inter Vivos Life Insurance plan which has a seven year term. The quote for a Gift Inter Vivos policy with a sum assured of £520,000 is £1,663.13 a month. It is worth noting that the same plan for an applicant who is 5 years younger is priced at £849.35 a month.
Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.
The maximum age someone can be at the end of the policy is 89 years old, therefore we need to try and get the policy underwritten and started before our client’s 82nd birthday in a few weeks time. Based upon the client’s age and the sum assured, all insurance providers will request a nurse medical (usually carried out in someone’s home). In addition to this, all providers will also request a completed questionnaire from the applicant’s GP.
For more information about Gift Inter Vivos Insurance and to read other case studies click here.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
If you would like to discuss arranging a Gift Inter Vivos Insurance don’t hesitate to call us some friendly and expert advice. Freephone: 0800 644 4468 or if you are calling from a mobile 01737 336990.
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Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success. Please note that all life, critical illness and income protection quotes will be subject to full medical underwriting.