As 2026 gets underway, now is a good time to review your life insurance. It may not be the flashiest New Year’s resolution, but the right cover can provide peace of mind – and may even help reduce Inheritance Tax (IHT) liabilities.
Why it matters
With the IHT threshold frozen for over a decade, life insurance has become an increasingly useful tool for families looking to manage taxable estates. Recent changes mean more assets, including business and agricultural property, are now potentially subject to IHT, making planning more important than ever.
Protection and tax efficiency
Life insurance ensures your loved ones are financially supported if the unexpected happens. Payouts are generally free from Income Tax and Capital Gains Tax, and when placed in the right type of trust, they can also be exempt from IHT.
A quick review can help you check your cover, align it with your current circumstances, and make sure your loved ones are protected while your estate planning stays tax-efficient.
