The whole of life market has seen “lots of activity” with individuals increasing sums assured by 50% or more in response to inheritance tax (IHT) changes.
This is according to Jennifer Gilchrist, protection industry affairs manager at Swiss Re, who was discussing results from the reinsurer’s Term & Health Watch this month.
In 2024, the newly elected Labour government announced that pensions and pension death-in-service benefits would be included within estates for IHT from April 2027, which will mean more estates will fall into the taxable bracket for IHT, unless action is taken.
And it appears individuals have been taking action to mitigate against these changes.
Gilchrist (pictured) explained that when the government came out with its new IHT rules in 2024 there was a flurry of activity around whole of life protection products.
“In 2025, the activity has held up, but what we’re seeing, is it having more emphasis on the size of the policies being written which has gone up on the life side by over 50% to £190,000 cover,” Gilchrist said.
“While the numbers [of policies enacted] have stabilised that uplift in the average sums assured is quite an interesting thing to see.
“But again, we’re thinking this is very much tailored to the whole of life market that is covering IHT provision.”
This activity may already by having an effect on tax revenue.
Official data earlier this month revealed IHT receipts in April 2026, the first month of the new 2026/2027 tax year, totalled £715m, compared to £780m in April 2025.
