The APP is a combined regular premium whole of life policy and trust designed to pay out a lump sum which will fund the policyholder’s financial liability, such as an inheritance tax bill, on death, therefore preventing other assets from being sold.
RL360° explained the new policy is a combination of its LifePlan regular savings plan and one of three of its existing trusts to allow for three different client scenarios:
- Non-UK domicile single or joint life/applicant who requires a lump sum on death, and possibly critical illness cover (CIC).
- UK domicile single life/applicant who requires a lump sum on death (and possibly CIC).
- UK domicile single or joint life/applicant who requires a lump sum on death only (no CIC).
It added that financial advisers may find this is a suitable solution for clients who are:
- Non-UK domiciled and have UK assets that exceed the nil rate band.
Or
- Non-resident UK nationals looking to return to the UK.
RL360° technical marketing manager Neil Chadwick said: “Being able to insure against a financial liability, as opposed to your estate having to sell assets to pay it after your death, is clearly the preferential option. The APP allows you to do just that.”
