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Article: 650 percent rise in premiums puts us at mercy of IHT.
- Article from:
- Daily Mail (London)
- Article date:
- June 24, 2007
CopyrightCOPYRIGHT 2007 Daily Mail. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jo Thornhill
Jun. 24--Thousands of couples are being forced to abandon life insurance plans taken out to help their children meet inheritance tax bills because huge rises in premiums have made the cover unaffordable.
The policies, known as whole-of-life or joint-life second-death, pay a lump sum on the death of the second spouse.
They are recommended by advisers because, if written in trust, proceeds are paid promptly and do not form part of an estate. This can help beneficiaries, typically children, meet an IHT bill without having to sell assets such as the family home.
But the way many of these policies have been set up means ...