Flexible Life Plan

A whole of life plan which will help your clients reduce or eliminate their inheritance tax liability

Our Flexible Life Plan (FLP) provides cover for individuals for the rest of their lives. It can be placed in a trust and used to reduce or eliminate any inheritance tax liability.

The FLP combines the protection benefits of a traditional whole of life plan with the investment structure of a traditional offshore bond. Individual policies can be structured in one of four ways:

  1. Standard or balanced cover – a portion of each premium is invested in life funds to help offset the increased cost of the life cover at each review (as a result of the life assured’s age).
  2. Maximum cover - provides the maximum level of life cover which can be maintained at the lowest cost for the initial 10-year period. At each review, the client can either choose to increase the premium amount to maintain the current level of cover or reduce the sum assured to maintain the current premium amount.
  3. Target cover - this is a mixture of standard and maximum cover where the FLP premium is designed to provide a specified amount of life cover for a specified number of years.
  4. Premium and benefit specific cover - this allows the client to choose both the level of cover and the level of premiums they want to pay. Part of each premium is used to meet the plan charges and the balance goes to the chosen life funds.

The fund range available includes over 150 funds managed by Canada Life’s own award winning investment team and other well-known and respected investment companies such as Jupiter, Investec, M&G and so on.

The funds being invested in can be changed at any time without charge.

  • The Flexible Life Plan can be tailored to your clients’ needs:
    • Single life, joint life first death or joint life last survivor basis.
    • Large sums assured can be covered.
    • Your clients can choose to place their policy within one of our range of trusts. This allows the client to choose who will receive the cash sum payment(s) from your policy.

The Flexible Life Plan (FLP) has a number of options including:

  • Guaranteed insurability options on marriage, child birth, adoption or potential inheritance tax liability (both an increase in the value of an estate and legislative changes).
  • Indexing the sum assured (annual increase option).
  • The opportunity at each policy anniversary to increase or decrease the sum assured.
  • Waiver of premium option.

We will notify your client and you if premiums cease. If premiums remain unpaid for 28 days then the policy will become paid-up and the life cover will end when the investment element of the plan has been depleted by the on-going costs of providing the cover.

The Flexible Life Plan (FLP) will appeal to clients looking to reduce or eliminate their inheritance tax (IHT) bill. By placing a FLP policy into one of our trusts the sum assured will then be paid to their chosen beneficiaries before probate is obtained and can be used to offset any IHT liability on their estate.

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This website is for UK professional advisers only and is not approved for use by private customers.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.