Lump Sum Life Insurance

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Lump Sum Life Insurance

Let your family choose their own security with one lump sum life insurance payment

Fill out our short form or call us on 03333 440 129

As the name suggests, lump sum life insurance is a type of life insurance with a lump sum payout given to your family or dependents after you die. This lump sum can be used by your family as they see fit and it can be a huge comfort to those left behind who are worrying about how they will pay off the mortgage, the funeral costs or any debts incurred.

Life insurance lump sum tax: what you need to know

A lot of people wonder whether their life insurance lump sum will be liable to large deductions in tax.

Only your estate (the belongings and money you leave in a will) is liable to inheritance tax and so your life insurance lump sum will only be taxed if it forms a part of your estate.

You can avoid this by writing the policy ‘in trust’ which means that your lump sum life insurance payment will be paid directly into a trust upon your death rather than your personal accounts and therefore will not become a part of your estate.

Doing this is advantageous as your estate may be liable to a substantial inheritance tax, which could mean that a large part of your insurance payout could be deducted as tax.

Although we try to provide appropriate and correct advice, please note that the Financial Conduct Authority does not regulate taxation and trust advice so cannot comprehensively advise on individual situations. Also, the levels bases and reliefs from taxation are subject to the individual circumstances of the investor and may be subject to change.

How much is the lump sum?

You can decide the total value of the lump sum that would be paid out upon your death depending on what you need and what you can afford. The life insurance lump sum payment amount won’t change over time so you can be sure that what you sign up to will still be there after your death, no matter what. This way, you will know exactly what your dependents will be left with in the event of your death.

To talk with one of our experts today, call 03333 440 129. Alternatively, please fill out the form above and one of our experts will contact you directly to discuss your requirements.

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I contacted One Direct knowing that I needed a lot of different types of protection, but unsure of exactly what I required. After a conversation about my circumstances, Gareth was able to recommend the exact products that would ensure my family were well looked after if something were to happen to me. All in all, I’m very impressed with the service that One Direct provided and would happily recommend them to anyone.

Matt Richie “”