Trusts are most commonly used for Term and Whole of Life policies. If the policy is arranged on a joint life basis, a trust is only required if the intended beneficiary is not the other policy owner.
Policies that include Critical Illness cover along with Life insurance can also be placed under trust, ensuring that any Critical Illness payments are paid to the policy owner in the event of illness, but paid to the trust in the event of death.
Income Protection policies are not placed under trust as they pay out in the event of ill health to replace your income.
Business Protection policies – your adviser will confirm which policies require a trust, but in many cases a trust will be required for business protection policies to ensure that the proceeds of any policy arranged go to the correct beneficiaries.