Protection specialist LV= has enhanced its whole of life policy, LifeTime+, by adding three guaranteed increase options (GIOs), from seven to ten, and the addition of terminal illness cover.
Under the three new GIOs, customers will be able to increase the value of their cover without further underwriting if their inheritance tax liability increases due to inflation, market movement, or a salary rise.
Furthermore, customers will have the flexibility to substitute their death in service benefit at the point of retirement.
In case a client is not expected to live more than 12 months, LV= will reimburse the terminal illness benefit in advance.
The payment can be written in trust for those using their whole of life policy as an inheritance tax planning tool, to avoid growth in the value of their estate and their tax liability.
Clients buying an LV= whole of life policy, automatically qualify for access to LV=’s member benefit services, such as unlimited access to a telephone counseling service, a legal issue helpline and a confidential health and wellbeing advice line.
LV= protection head Mark Jones said, "Our product can be used by those who want to fund all or part of the tax liability that may be payable on their death, or want protection that will pay out whenever they die."
LV= has introduced an estate calculator tool, for advisers with clients considering a whole of life policy for tax planning reasons, to enable them quantify their clients’ inheritance tax liability.