Trusts

Available from 6th August 2018

Introducing our new Online Trusts

The benefits of our new Online Trusts

  • No need for signatures – Trusts are in place from the outset, making it easier for you and your customers
  • More flexibility – an enhanced split Trust feature allows your customers to choose how much Terminal Illness or Critical Illness benefit they want to retain
  • Greater Freedom – customers can exercise product options without trustee’s permission such as declining of indexation option

FOR NEW APPLICATIONS ONLY

Trusts video


 

  1. Why Trusts are a good thing for your customers

    A Trust is a great way to help ensure your customers’ loved ones or their business is protected. By placing their life insurance in a Trust, they can benefit from

  2. Better control

    Making sure the money goes to the right people at the right time

  3. Faster payments

    With no probate, the money can be paid quicker

  4. Avoid Inheritance Tax (Personal Protection)

    Money paid out from your customers’ life insurance will not be part of their estate, helping to reduce any potential Inheritance Tax bill

  5. Trusts can also ensure your customer’s partner receives the money they need to live on. For example, if your customer didn’t have a Trust and they weren’t married or hadn’t made a will, their surviving partner may not be legally entitled to the policy proceeds. So it’s a great way to protect the people who are important to them.

  1. How do Trusts work?

    There are three key roles in a Trust – the settlor, trustees and beneficiaries

     

  2. Settlor

    The settlor is the person/s setting up the Trust. They choose who benefits from the policy and who looks after the money (the trustees). The settlor is responsible for paying the premiums and is automatically one of the trustees. For Relevant Life Plan Trusts the settlor is referred to as the Principle Employer

  3. Trustees

    These are the people chosen to look after the Trust, make any future claims, and arrange for the money to be paid to the beneficiaries - in-line with the settlor’s instructions. It’s also their responsibility to take legal ownership of the Trust fund, and act in the best interests of all the beneficiaries.

    For Relevant Life Plan Trusts, it will automatically be your employer. As for Share Protection, the trustees will include the other business owners.

  4. Beneficiaries

    For Personal and Relevant Life Plan Trusts, these are the people who are to receive the money from the Trust fund. This could be a spouse, registered civil partner or children for example.

    As for Share Protection Trusts, the beneficiaries will be the other business owners.

  1. Our range of Trusts

    Everyone’s needs are different, that’s why we offer a range of Trusts your customers can choose from, depending on their circumstances.  Take a look below at how they compare.

  2. Compare our Trusts

    Type of Trust

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    Type of Trust

       Reason for cover

    Available for Single/Joint plans?

    Change beneficiary? 


    Online?


    Who benefits?
    Flexible  Personal Yes Yes Single life policy only
     
    Your customer names default beneficiaries who are first in-line to receive the benefit. The trustees can also use their discretion.
    Discretionary  Personal Yes Yes Single life policy only
     
    The Trustees have discretion over who will receive the benefit, but specific guidance can be provided in a letter of wishes.
    Survivors  Personal Joint life policy 
    only
    Yes Yes The surviving life insured will automatically receive the benefit (if they survive the first to die by 30 days).
    Relevant Life Plan Relevant Life Plan Single life policy only Yes Yes Your customer names default beneficiaries who are first in-line to receive the benefit. The trustees can also use their discretion.
    Business Protection  Share Protection
       Key Person
    Single life policy only Yes Yes The co-business owners.
    Absolute  Personal Yes No No Your customer names the beneficiary at the outset and it cannot be changed.
     
  1. Specialist teams to handle your customers claim

    Our claims team are specially trained by the Samaritans, so you know that your customers’ trustees will speak to someone who understands that this may be a difficult time. They’ll also make every effort to pay a claim quickly.

    Find our Claims contact numbers here

  2. Setting up a Trust - making it easier

    There are two ways to set up a Trust for your customers. You can either create a trust in OLPC when submitting an application or create a paper Trust via our trust tool – it’s up to you.

    OLPC   Paper Trusts Tool

  3. FAQs & Guide

    Find frequently asked questions around Trusts or our new Online Trusts, you can also download our guide for additional information

    Read FAQs  Download Guide

Disclaimer

This website is designed to give professional financial advisers information and tools that they can use to help control and develop their business and should not be relied upon by private investors or any other persons.