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Categories: My cover , Life insurance

Can I choose who gets the money from my life insurance policy if I die?

Yes, in certain circumstances you could put your life insurance policy in a suitable trust and name who you'd like to receive the money, if a claim is successful. If the policy is in Trust, it can pay out faster (provided there’s at least one surviving trustee) when a claim is accepted, as there is no need to wait for people to be appointed to deal with your estate.
Payments may not be counted as part of your estate, so may not be liable for Inheritance Tax. Tax treatment depends on your circumstances, and bear in mind that tax laws may change in the future. Setting up a trust can be easy, but it has legal and financial implications, so you should talk to a financial adviser or tax specialist, which you can find at
You could include instructions about who receives any proceeds from your policy when you make a will, but this may not provide the same protection against Inheritance Tax. You should speak to your own legal and/or financial adviser about this.

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