PruProtect has launched an online inheritance tax (IHT) calculator to support advisers using Whole of Life cover to mitigate potential liabilities.
The tool calculates a client's potential IHT liability both at the current time and at a projected future date, based on growth rates which the adviser can adapt for their purposes.
The insurer said many advisers use Whole of Life cover as a way of mitigating potential IHT liability for their clients, with the proceeds from the Protection being used to offset the bill from the government.
For example, a 35 year old with a property valued at £475,000, investments of £50,000 and a pension of £50,000 could have an IHT bill of £100,000 today. But in 30 years time they could have accrued an IHT bill of over £864,000, assuming a growth rate of 5%.
PrupProtect said taking a Whole of Life policy today, with a sum assured of £100,000 on an index linked basis might cost £26.84 per month. It would mean that the client's next of kin could avoid losing a sizeable chunk of their inheritance.
The tool, available to all intermediaries via the PruProtect website, also produces a printable report of the calculations made, which advisers can share with their clients and retain for compliance purposes.
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