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Life Insurance with Critical Illness

Our life with critical illness cover can pay a lump sum if you die or suffer a critical illness

  • With 64 critical illnesses covered, we’re one of the market leaders
  • Up to £25,000 children’s critical illness cover included at no extra cost
  • We pay claims quickly – and you can use your money how you want
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Putting your policy in trust

If you’d like to put your Life and Critical Illness policy into trust, please call our customer services team on 0800 678 1906 (textphone: 18001 0800 678 1906). They will be able to provide you with details of the trusts we have available.

Bear in mind that we can't provide advice on whether putting your policy in trust is right for you. Once you've put a policy in trust you can't change your mind later so you need to be really sure that it's right for you. Also there are different types of trust available and it may not always be clear which should be used. So if you're in any doubt about whether it’s right for you, you should seek legal advice.

The basic facts of trusts

  • A trust is a legal arrangement that lets the owner of something 'gift' it to someone else. This could be shares, a home, cash, or a life insurance policy.
  • This is done by creating a trust deed which sets out the terms and conditions that the trust can operate under.
  • Normally, placing a policy in trust is an 'irrevocable' act. This means once the policy is in trust this decision can't be changed later on, so it's important to carefully consider if putting a policy in trust is right for you.
  • You can put a life insurance policy into trust as soon as it starts, or at a later date.


  • Proceeds are paid to the right person/people.
  • Proceeds are paid out quickly; we won't need to wait for probate (which can sometimes take several months).
  • Helps avoid inheritance tax - the proceeds won't normally be included in the deceased's estate and can usually pass tax-free to whoever is chosen as beneficiaries.


  • The policy can't be taken out of trust later on
  • Control over the policy is given to the trustees so you can't make changes to it.
  • You can't benefit from the policy (this isn't usually a problem if you're the only policy owner but it can get complicated with things like joint life policies).

Who is needed to set up a trust?

There are three groups of people needed to set up a trust. These are the settlor, the trustees, and the beneficiaries.

The settlor – this is the person or people who set up the trust, and put their life policy into it. So they are the current owners of the life insurance policy. The settlor chooses the trustees and decides who they would like the beneficiaries to be.

The trustees – these are the people responsible for looking after the policy put into trust on behalf of the person or people who will get the money when the life policy pays out – the beneficiaries.

The beneficiaries – these are the people who will get the money from the trust

Children's critical illness cover

Nicola and Jeremy share their story about their son's illness.

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Call LifeSearch on:
0800 197 2266

Mon to Thu 8am - 8pm
Fri 8am - 6pm

Existing customer?
0800 678 1906

8.30am - 6.30pm Monday to Friday

Calls may be recorded and/or monitored for training and audit purposes.

LV= have chosen to partner with LifeSearch to offer customers independent advice for protection products.

More about LifeSearch and your protection needs

Understand life cover

We've created lots of useful information to guide you through the process of finding which life insurance product is right for you.

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Why choose LV=

An insurance provider you can trust established in 1843.

  • 91% of critical illness claims paid in 2016
  • UK's largest friendly society

Policy documents

  • Policy summary
  • Policy conditions

View policy documents

Get advice

LV= have chosen to partner with LifeSearch to offer customers independent advice for protection products.

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