VitalityLife has launched an online signature-free solution to make it quicker for advisers to place protection plans in trust.
In addition, advisers can set up a trust as part of the protection application using VitalityLife’s Adviser Hub self-service portal. The signature-free solution is available for all new personal and business protection plans on VitalityLife.
Sally Burrowes, director of legal at VitalityLife, said: “It can be hard for advisers to demonstrate the benefits of placing protection plans in trust, often because of the time-consuming nature of the process. Our new signature-free online solution means it will be quicker and easier for advisers to place plans in trust, further supporting our aim to ensure members have the most comprehensive protection possible.”
Francis Gill, director at Humboldt Financial, said: “Ensuring life cover ends up in trust is a key element of financial planning. By making the process as smooth and quickly as Vitality have now done, our clients can easily ensure that their loved ones quickly and easily receive the life cover payout, and lets them get back to what they do best, spending time with their family and friends.”
Benefits to placing protection plans in trust
- When held in a valid trust, the plan will not be subject to inheritance tax as part of the settler’s taxable estate;
- The plan proceeds are paid directly to the trustees, thereby making the process faster, and
- VitalityLife’s trusts are split trusts meaning the settler has the ability to retain some benefits from the plan (such as serious illness cover) whilst being able to gift others (such as the life cover).
In 2018, VitalityLife paid out a record £56.3m ($70.4m) in claims. In addition, 99.8% of life, 97.8% of income protection, and 91.2% of serious illness cover claims were paid.
According to VitalityLife’s Claims and Benefits Report, 1,417 claims were paid across all products.
VitalityLife combined annual claims information with statistics on the benefits that members gain by engaging. More than £81m was given back to members in terms of benefits and rewards, such as discounted health screens, coffees, and Amazon Prime membership.