Flexible Life Plan

Protecting your family’s future wealth with our whole of life plan

The ‘Flexible Life Plan’ is a life policy which pays a cash lump sum on the death of a named adult.

The plan has many uses which include estate or inheritance tax planning. By placing a Flexible Life Plan policy within a trust you can make sure your family receives a cash sum before probate is obtained.

  • The ‘Flexible Life Plan’ can be tailored to your specific needs. You can choose:
    • cover for 1 person (single life) or 2 people (joint life), for example, for you and your spouse, partner or registered civil partner.
    • the level of cover and the amount you pay for this cover is known as the premium. We will calculate the cost of providing this cover for the first 10 years based on a number of factors including your health, lifestyle and occupation. You can choose to pay a higher premium amount to reduce the likelihood of the premiums increasing at the 10 year review.
    • a level of cover which will pay the whole inheritance tax bill on your death. Alternatively you can choose a lower level of cover and use savings to pay the balance.
    • to place your policy within one of our free trusts, which will allow you to choose who will receive the cash sum paid on your death which will reduce your potential inheritance tax bill.

You can vary the level of cover you need:

  • If you circumstances change then on each policy anniversary you can increase or decrease the level of cover.
  • You can set-up your policy so the level of cover increases automatically each year (the annual increase option).
  • You can increase the cover if the:
    • value of your estate increases your inheritance tax liability.
    • UK Government changes the inheritance tax rates or bands and this means your prospective inheritance tax liability increases.


A professional adviser can help you to calculate your prospective inheritance tax liability.

At the start of your plan you can choose to pay an additional premium which will mean if you are unable to perform your own occupation for a continuous period of six months due to illness or an accident, you won’t have to pay any premiums. This benefit will continue for as long as you are unable to work, but expires either when you reach the age of 65 or the policy ends.

You can choose to invest the premiums you pay in up to four life funds. You can chose from our range of 150 funds managed by Canada Life’s own award winning investment team and other well-known and respected investment companies such as Jupiter, Investec and M&G. You can change your fund selection at any time. The cost of the on-going life cover is taken from these funds.

The value of investments can fall as well as rise.

The value of investments can fall as well as rise and you should speak to a professional adviser to ensure that any investment is suitable for you.

The policy is reviewable and your premiums may increase in the future in order to maintain your level of life cover.

If you stop paying the premiums on your policy then after 28 days the policy will become paid-up. The monthly cost of providing the life cover will be calculated and the life cover will continue until the investment element has been depleted. The policy will then lapse without any value. We will contact you if you miss a premium.

The Flexible Life Plan is designed to pay a cash sum if you or another named individual dies during the life of the policy, which can be used to pay part or all of your inheritance tax (IHT) bill. By placing a Flexible Life Plan policy into one of our trusts the sum assured will then be paid to your chosen beneficiaries before probate is obtained.

The plan will also appeal to people who are looking for high quality service which is backed by a published service charter. Our service charter includes a monetary payment in the unlikely event we fail to deliver on our stated turnaround times.

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Flexible Life Plan

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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.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised and regulated by the Financial Conduct Authority.