Growing concern over inheritance tax is fuelling renewed demand for protection advice, with life insurance increasingly being used as an estate planning tool.
Speaking at Money Marketing Interactive London on Thursday (9 October), Naomi Greatorex, managing director at Health Protection Solutions, said fiscal uncertainty and tax rule changes have pushed protection to the forefront of clients’ minds.
“We’re seeing more people talking about protection as a solution to inheritance tax planning,” she said.
“It’s become one of the first steps that many clients now consider, and that has completely changed the landscape for protection.”
She added: “For the first time, we’re getting people contacting us because they’ve read about life insurance and inheritance tax in the press. That just didn’t happen before.”
Greatorex said the shift is also reshaping professional relationships, with accountants, tax advisers and wealth managers increasingly referring clients for protection advice as they look for practical ways to manage intergenerational wealth transfer.
“We’re dealing with people we’ve never dealt with before – tax advisers, wealth managers, accountants – who are now actively talking to their clients about life insurance,” she said.
The change is driving more nuanced conversations about product mix.
Greatorex said advisers are moving beyond traditional whole-of-life policies towards more flexible and blended solutions, including segmented or staged cover, reviewable premiums and policies to age 90.
“It’s not just about a single whole-of-life plan anymore. Clients want flexibility, and the market now allows us to tailor cover to fit different gifting and estate planning scenarios,” she said.
Greatorex also urged advisers to discuss protection earlier, warning that delays can make cover significantly more expensive or, for some clients, unattainable.
“Life insurance gets so much more expensive as clients age, and underwriting outcomes vary hugely across providers,” she said.
“Having those conversations early allows advisers to test health, explore underwriting options and lock in value before future rule changes take effect.”
