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Give your clients peace of mind on any gifts they give their loved ones.

Gift Inter Vivos

If your client gifts assets away to loved ones other than spouses, there’s a risk that if they were to die they’d leave behind a large tax bill. To make it worse, the tax man will be collecting from the people who received the gift rather than from the estate. This can be difficult to pay, especially if it’s something tangible like a home.

Our Gift Inter Vivos plan offers a lump sum payout on death, matching the liability on any gifts which the HMRC would consider a potentially exempt transfer over the nil rate band for Inheritance Tax.

Features included as standard

  • Premiums start from £7 a month or £84 a year
  • Decreasing over 7 years
  • Guaranteed premiums

Options

  • A choice of a one off payment, or a choice of monthly, quarterly or yearly premiums

Additional services

  • Access to the LV= member helpline gives 24/7 access to health advice, counselling services and expert legal advice
  • LV= Doctor Services which gives gives your clients access to six medical services via one simple app or phone call

A closer look...

Your client's premiums won't increase, so your client knows what they'll be paying in the future.

Our Gift Inter Vivos plan offers a lump sum payout on death, matching the liability on any gifts which the HMRC would consider a potentially exempt transfer over the nil rate band for Inheritance Tax.

All of our features are covered in full in our policy documentation.

Product features

Details

Type of benefit

Lump sum

Term

7 years

Minimum age at entry

17

Maximum age at entry

79

Maximum age at end of plan term

86

Minimum premium

£7 a month

Other eligibility criteria to take out a plan

Applicant must be a UK resident

A Gift Inter Vivos life assurance policy provides a lump sum to cover the potential Inheritance Tax (IHT) liability that could arise if the donor of a gift is not covered by the Nil Rate Band (NRB) and dies within seven years of making the gift.

The policies can be written under trust for the recipients of the gift to enable them to pay the IHT due in respect of the gift if the life assured were to die during the term of the plan.

These plans are useful to people with large estates that want to make a gift, in excess of their NRB, in order to reduce their potential bill. Especially if they are concerned that should they die within seven years of making the gift the beneficiary will incur the liability.

By taking this type of insurance the donor helps ensure that the beneficiary can cover any IHT payable on the gift, should they die during the seven years after making the gift.

With the increasing value of people’s homes and more people building assets, IHT is a growing concern for many more customers.

What counts as a gift?

According to HMRC, a gift can be:

  1. anything that has a value such as money, property and possessions
  2. a loss in value when something’s transferred, for example if you sell your house to your child for less than it’s worth, the difference in value counts as a gift

Depending on when you gave the gift, ‘taper relief’ might mean the Inheritance Tax charged on the gift is less than 40%.

The table below shows how the sum we would pay out on death goes down over the term of the plan in line with inheritance tax liability.

Years after plan start date

Amount of cover paid

0-3

100%

3-4

80%

4-5

60%

5-6

40%

6-7

20%

7+

0%

Strong claims performance

Strong claims performance

Making sure your client has a successful claim is as important to your client as it is to you. Your clients get vital financial help when they need it most and you feel confident in the provider you recommended.

We’re proud of our performance with 95%* of Life Insurance claims were paid in 2018 and a total value £32.6m claims paid.

*These figures include claims paid for both our Life Insurance and Lifetime+ products. Our Lifetime+ product is no longer available.

Better underwriting

We know advisers are not usually medical experts so we help out as much as we can. This means you can concentrate on providing the best financial advice for your client.

  • We have no standard exclusions on our income protection plans making it straightforward to explain to your client.
  • Our online application system is powered by a strong, intelligent underwriting rules engine which means that you're more likely to get an instant decision.
  • We have flexible medical examination arrangements. If your client needs a medical examination, we could send a nurse to visit them at home or work or use a medical examiner at a convenient location.
  • We pay for medical underwriting (except medical certificates such as sick notes).
  • We have a dedicated underwriting hotline to help you iron out any potential issues your client may have.
Large case team support

For Gift Inter Vivos cases over £1m, we'll offer you dedicated support from our Large Case Team, who you can rely on to look after your application. They'll deal with the application from start to finish, and actively chase and review evidence to get the cover in place as quickly and smoothly as possible.

Value add services

LV= Doctors services

LV= Doctor Services gives your clients access to six medical services via one simple app or phone call.

  • Remote GP
  • Prescription Services
  • Second Opinion
  • Remote Physiotherapy
  • Remote Psychological Services
  • Discount health MOTs

Member benefits

Every client who is covered by one of our personal or business protection and retirement products automatically becomes a member of LV=. This means they are entitled to a range of added benefits and support. These include free and unlimited access to our 24/7 confidential member helpline and discounts on a number of LV= insurance products.

Our LV= member helpline gives you 24/7 access to health advice, counselling services and expert legal advice.

Being an adviser isn't just about selling products. With this in mind we aim to help you as much as we can. See below for information to help support your business sales.

Suitability wording

We’ve produced a range of template paragraphs that are designed to describe generic features of each type of policy, as well as the specific benefits of our own products. You can use and adapt these paragraphs to help construct your own Suitability Letters.

Create a suitability letter

 

A good suitability letter is:

  • your opportunity to justify and reinforce the reasons for your advice and recommendations
  • an excellent opportunity to document unmet and future needs and the importance of ongoing review discussions
  • your record of the discussions held and the recommendations made/not made and why

It should be clear, fair and not misleading. It should be personal, explain the reasons why a recommendation has been made and how it meets the customers needs and objectives. It should highlight any risks involved.

LV= has taken care to ensure the accuracy of the information at the time of issue but does not accept liability resulting from your use of it.

Read below a summary of the relevant product information about Gift Inter Vivos, in accordance with the Insurance Distribution Directive. Designed to help you make an informed decision and comparison for your client, we set out the product’s target market, distribution strategy, suitability, main features, risks, options and costs.

This information is also available in downloadable pdf format.

This is only a summary of the product features. For more information please read the Policy Summary and Policy Conditions.

Target market

This product is aimed at clients who have gifted assets to someone other than a spouse and want to provide a lump sum to cover any inheritance tax liability on a Potentially Exempt Transfer (PET) that is over the nil rate band for inheritance tax. The person who receives the gift would have to pay any tax due and gifts can be liable for inheritance tax for up to seven years.

This product is a seven year single life decreasing term assurance policy which provides a one-off lump sum payment and the amount of cover reduces each year in line with the inheritance tax liability. If your client received a gift the plan could cover the potential inheritance tax due on that gift using their own life plan.

Distribution

To ensure your clients receive the right level of protection, we believe this product should be sold on an advised basis, face to face or over the phone.

It’s important to regularly review your client's circumstances and protection needs to make sure their cover is appropriate.

Main features

  • Pays a cash lump sum on death during the term
  • Decreasing cover over the seven year term
  • Guaranteed premiums

What is not covered

  • We won't pay a claim if your client dies as a result of intentionally taking their own life in the first 12 months of the policy
  • This policy is not suitable for clients who want to cover themselves against a critical illness or protect their income should they be unable to work due to accident and sickness
  • This policy is not suitable for a client who has made a PET that is below the nil rate band (or when that gift is added to gifts the made in the last 7 years the total is still below the nil rate band)

Risks

  • There is no cash in value at any time
  • After the plan has been issued, your client can't change it
  • If your client stops paying their premiums, their cover may cease

To apply clients must be:

  • Permanently living in the UK
  • Aged between 17 and 79

Limits and basis

  • The policy has a set term of seven years
  • The policy must end before the person insured reaches the age of 86
  • Clients can only take out a policy on a single life basis
  • An own life Gift Inter Vivos policy should normally be written in trust, or the policy should be set up on a life of another basis
  • If the policy is written under trust or taken out on a life of another then the proceeds on death won’t normally form part of an estate for inheritance tax purposes
  • If the policy is set up as an own life basis and not written in trust the amount of cover paid on death will be added to the deceased’s estate and may be subject to inheritance tax
  • How much tax your client pays depends on their personal circumstances. Any tax references are based on our understanding of the current legislation and HM Revenue & Customs practice which can change.

Suitability

Is suitable for:

  • Clients who want guaranteed premiums; payable as either monthly, quarterly, yearly or single payments
  • Those whose need for cover expires before they reach age 86 as this is the maximum age at which the policy can end
  • Clients who want own life cover, or life of another
  • To provide the recipient of a Potentially Exempt Transfer (PET) cover for any potential inheritance tax that would be due on the gift that is above the nil rate band if they were to die within 7 years of making it
  • People who have made a PET above the current nil rate band, or they have already used their nil rate allowance for gifts made in the previous 7 years

Is not suitable for:

  • Those who are looking for joint life cover
  • Those who have made PETs that are below the nil rate band (or if the PET when added the cumulative total of gifts made in the last 7 years is still less than the nil rate band)
  • Those who have made a PET previously (as the term of the policy is set at 7 years, so it won’t cover gifts previously made)
  • Those who have gifted to a spouse
  • Covering the inheritance tax liability due on assets other PETs

Options and additional benefits

Member benefits: With this policy your client automatically becomes a member and is entitled to a range of benefits, at no added cost. These include voting rights, free advice helplines and discounts on selected LV= products. These benefits are non-contractual and can be changed or removed at any time, and conditions apply. More details about LV= membership and member benefits are available at LV.com/members.

LV= Doctor Services: All new policyholders have access to a number of app-based medical services and advice, at no added cost. These include virtual GP consultations, prescription and second opinion services. These benefits are non-contractual and can be changed or removed at any time, and conditions apply. For more details visit LV.com.

Costs

The policy premium also includes a fee, which is a fixed monthly amount, to cover administration and support costs.

LV= Doctor Services is provided by Square Health Limited. This service is not regulated by the Financial Conduct Authority or Prudential Regulation Authority.

Underwriting support

Pre-underwriting helpline

Go straight through to our underwriters who can quickly answer questions like exclusions or loading.

Email: [email protected]
Call: 0800 678 1893
8:30am to 6:30pm Monday to Friday
TextDirect: first dial 18001

Tele-interview service

Our underwriters may need more information on either a particular area, or simply in relation to the amount of cover applied for.

Our team of friendly, fully trained UK based tele-interviewers, will call your client to gather details of their health and medical history so we can assess their application. This usually takes between 20-30 mins.

You can read our Tele-interview guide to help prepare for ain interview.

Tele-interview booking service

You or your client can book a tele-interview appointment with us directly online within 30 mins, without having to contact our new business team.

  1. It's usable as soon as you have the policy number.
  2. It shows all of the appointments available.
  3. You can book appointments as early as an hour after submission or up to seven days in advance.
Underwriting and financial limits

Age next birthday

PSR*

Cotinine**

GPR

ME

HIV

BIOCHEM

PROF

HbA1c

EXECG

To age 35

£750,001

£900,001

>£1m

>£2m

>£1.5m

>£2m

N/A

N/A

>£7.5m

36-40

£600,001

£900,001

>£1m

>£2m

>£1.5m

>£2m

N/A

N/A

>£7.5m

41-45

£500,001

£800,001

£750,001

>£2m

>£1.5m

>£2m

N/A

N/A

>£5m

46-50

£400,001

£700,001

£600,001

>£1m

>£1.5m

>£1m

N/A

N/A

>£4m

51-55

£250,001

£550,001

£400,001

>£1m

>£1.5m

N/A

>£1m

>£1m

>£3m

56-60

£200,001

£450,001

£300,001

£750,001

>£1.5m

N/A

>£1m ***

>£1m

>£2m

61-65

£100,001

£250,001

£150,001

£500,001

N/A

N/A

>£1m ***

>£1m

>£1.5m

Over 65

£75,001

£150,001

£100,001

£250,001

N/A

N/A

>£1m ***

>£1m

>£1m

* PSR not required if ME required. ** Cotinine required on non smokers only. *** PSA included

Make a claim

Making a claim on behalf of your client

You can contact us in the following ways to notify us that your client wishes to make a claim;

  1. phone: 0800 756 5869
  2. email: [email protected]
  3. post: LV= Health Claims Team, Emperor House, Grenadier Road, Exeter Business Park, Exeter, EX1 3LH

The information we need

For most claims, we’ll send your client a claim form. This should be completed, and include the name and contact details of your client's GP or medical specialist, as well as any supporting medical or financial evidence requested in the claim form. We may also ask for:

  • Basic details of the reason your client is unable to work.
  • Financial evidence as detailed in the claim form.

Paying the claim

  1. We’ll keep your client (and you) informed throughout the claim.
  2. We'll contact your clients GP or medical specialist directly to follow up on any outstanding requests for medical evidence.
  3. We’ll let your client know if there’s anything they can do to speed up their claim payment.
  4. We’ll normally pay the claim within 48 hours of receiving all the required evidence and making a final decision.
  5. We offer your client free access to a medical second opinion from one of the UK’s biggest networks of medical professionals through LV=’s partner Square Health.
Claims performance

95%* of all new Life Insurance claims were paid in 2018

Here at LV=, we offer a clear and fair approach to paying claims, as we believe anyone can be affected by long-term illness – regardless of age or lifestyle. Take a look at our full 2018 claims performance.

Protection summary 2018

Life*

Total value of claims paid

£32.6m

Average annual benefit/payment

£56,659

Highest annual benefit/payment

£675,000

Policy in force duration

9 yrs 2 mths

Ave. age customer at claim

Life*

Male icon

Male

63

Female icon

Female

63

An icon of a man and lady

Youngest customer

24

*These figures include claims paid for both our Life Insurance and Lifetime+ products. Our Lifetime+ product is no longer available.

FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK