" There is a genuine risk of leaving them exposed and vulnerable to financial difficulty unless people get their affairs in order beforehand."
UK consumers risk losing £99.98bn a year because their life insurance policies aren’t written into trust, according to research from Legal & General.
Whilst Legal & General’s research showed that 82% of consumers have assets they wish to pass on to loved ones in the event of a claim, two-fifths (40%) have never heard of placing their life insurance policy under trust. Additionally, more than four in ten (43%) consumers questioned said they didn’t have a will in place.
Previous L&G research found that 20% of advisers are unaware of the benefits of writing their clients’ life insurance policies into trust.
Craig Brown, Director of Legal & General Intermediary, said: “It’s certainly tempting to avoid thinking about the future, but it’s essential to remember our responsibility to our loved ones. As this research shows, there is a genuine risk of leaving them exposed and vulnerable to financial difficulty unless people get their affairs in order beforehand.
“By speaking with an adviser and putting a life insurance policy into a trust or making a will, policy holders will have much greater security. Knowing that their family will be covered in the case of unforeseen circumstances will not only give policy holders greater peace of mind, but will also ensure that their loved ones gain the maximum benefit from their insurance policy.”