Eight in 10 advisers always or frequently promote the use of trusts or beneficiary nomination during client meetings, according to research from Royal London.
The survey of more than 100 advisers found they mainly discussed trusts with clients for getting the money to the right person (84%), estate planning (64%), providing good outcomes (51%) making the claims journey faster and more efficient (46%) and holistic planning (30%).
Just 2% of advisers said they never or rarely discussed using them, with the vast majority always (66%) or frequently (15%) promoting their use, while a further 17% said it was dependent on the client’s circumstances.
Findings from a Swiss Re report last week revealed eight in 10 single own life term policies are not put in trust. Of those taken with advice, as expected, uptake is higher, but still only reached three out of 10 in 2022.
Jennifer Gilchrist, protection expert at Royal London, (pictured) said: “While ensuring life cover is in place is the right thing to do, it’s only part of the process. For complete peace of mind, it’s essential that clients identify who the beneficiaries are, so it’s hugely encouraging that advisers are delivering value for their clients by instigating those conversations.
“The Consumer Duty requirements place a strong onus on advisers taking all reasonable steps to achieve good outcomes for their clients and their beneficiaries, removing any risks of the life cover proceeds not being paid to the intended recipients.
“The findings are very clear, writing a protection policy in trust or under beneficiary nomination is already on advisers’ radar and is almost always a part of the conversation with a client.
“However, with such healthy numbers promoting trusts and beneficiary nomination, it begs the question why an active decision on who should benefit from life policies isn’t being made by more clients.”
