Royal London has seen a 50% increase in sales of whole of life protection policies.
Over the summer, the mutual revealed it had almost trebled its new protection sales in the first half of the year thanks to soaring interest in high-net-worth and inheritance tax-related (IHT) products.
The new business contribution from its protection division rose to £30m from £11m in H1 2024 at a new business margin of 6.7%, which was up from 2.9% in the corresponding period of last year.
It noted that it had expanded its proposition to support estate planning needs.
This included the launch of a joint life second death term product in late 2024 which, alongside its whole-of-life offering saw “strong” demand following proposed IHT changes announced in the October Budget.
IHT hub
This continued market growth has now prompted the mutual to launch an IHT hub for advisers.
The hub will support advisers through client conversations about IHT as recent changes in the financial landscape put IHT firmly in the spotlight.
Research from Royal London highlighted the significant concern surrounding IHT in the UK, with three in 10 adults saying they believe they will be affected by the planned IHT changes coming into effect from April 2027.
The insurer said the IHT hub has been designed to evolve in line with ongoing policy and regulatory changes.
It includes, up-to-date expert articles and insights on inheritance tax planning, guides covering protection and pension solutions, resources to aid client conversations, and regular updates reflecting policy developments and market changes.
Clare Moffat, head of technical and marketing compliance at Royal London, said: “Inheritance tax has become a contentious issue as a combination of frozen thresholds, soaring asset values, particularly property, and major upcoming reforms has transformed it from a tax on the very wealthy into a levy that affects an increasing number of families.
“The prospect of pensions being subject to IHT is driving more people to seek expert advice and consider options like gifting and life insurance to reduce potential bills, and as such advisers are facing more questions than ever.
“Since last year’s Autumn Budget, inheritance tax has been a concern for an increasing number of families, which has driven advice enquiries and a 50 per cent increase in sales of whole of life protection policies at Royal London.
“It’s clear that there’s a real concern among clients about these significant changes and a need for an information hub to support advisers,” she added.
