Is all of life insurance, always the best product for paying inheritance tax?

Well, it depends…It's always got to be tailormade to the client.

If you were going to take out life insurance, you should always explore doing it by paying a fee, rather than the adviser taking commission as sometimes on these policies the commission could be £20k-£30k.If the advisor gets paid a fee instead then you, the client can save 1000s of pounds over the term of the policy.

But is it the best product? If you know you're going to get rid of your Inheritance Tax problem and you're certain that you're going to do it within seven or 10 years, maybe a term assurance will be better.

If you are going to keep a main residence for instance, and you projected forward growth of 3.5% a year on your main residence value it is likely to be well beyond your allowances for inheritance tax.

In that event standard holder of life insurance is usually a pretty good product for resolving the problem. However, if you've got health issues it may not be, maybe an equity release is better.

So, the honest answer is that one can't be certain, you need to get experienced advice to make sure that you're doing the right thing for you.

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