Life insurance provides a safety net for loved ones in the event of your passing. However, simply purchasing a policy does not ensure that your assets are distributed according to your wishes. This is where a life insurance trust comes into play, offering a solution for managing and protecting your wealth and assets in the event of your death.

What is a life insurance trust?

A life insurance trust is a legal entity created to take ownership of a life insurance policy. The trust is managed by a trustee, who is responsible for distributing the proceeds according to your wishes and ensuring the funds go to the beneficiaries you have selected.

What are the benefits of a life insurance trust?

Investors in UK property have for many years been attracted to holiday lets. This type of investment rose further in popularity during the pandemic when international flights were grounded and holidaymakers sought out alternative holiday accommodation in the UK. Many developers and landlords seized what they saw as potential investment opportunities, buying properties to turn into holiday lets and expanding tourism in the country’s hotspots as a result.

The downside of this for people living in the affected communities is how challenging it has become to get on to the housing ladder.

You call at 8am on the dot, as soon as they open, in the hope of getting ahead of the queue. The line connects, yet you still find yourself with 20 callers in front of you. So you wait on hold for an hour, only to be told to “try again later” or that “the next available appointment is in 4 weeks”!

Sound familiar?

Unfortunately this is something that too many of us are experiencing in the current climate. Following the disruption to GP services during the pandemic¹, appointments are hard to come by these days² with many GPs struggling under the weight of the increased demand and backlog.

But did you know your mortgage or income protection plan could help?

With the base rate rising and lenders changing interest rates regularly, a popular question we get asked is: “If the base rate hasn’t moved, why has the interest rate available from lenders gone up?” or “The base rate went up, but lenders haven’t changed their rates. Why is this?”

Many factors play into making an interest rate. Often lenders will tweak their rates to ensure they are not market-leading, as they wouldn’t be able to cope with the volume of applications, but other economic factors can play into it too. With the majority of mortgage products being fixed rates, lenders look to swap rates to assist them in their pricing.