Can I choose who gets the money from my life insurance policy if I die?
Yes. You could put your life insurance policy in a trust and name who you'd like to receive the money, if a claim is successful. If the policy is in an Aviva Trust, we can pay out faster (provided there’s at least one available trustee) when we accept a claim, as we don't need to wait for people to be appointed to deal with your estate.
Payments may not be counted as part of your estate, so may not be liable for Inheritance Tax. Tax treatment depends on your circumstances, and bear in mind that tax laws may change in the future. Setting up a trust is easy, but it has legal and financial implications, so you should talk to a financial adviser or tax specialist, which you can find at www.unbiased.co.uk.
You could include instructions about who receives any proceeds from your policy when you make a will, but this may not provide the same protection against Inheritance Tax.