UK health and life insurer, The Exeter, has today announced that since introducing beneficiary nomination on its Real Life product in March, over half (60%) of single life policies have included a nominated beneficiary. A further 10% of policies have used a trust form to safeguard future benefit payments.
Before the beneficiary nomination feature was introduced, around 40% of The Exeter’s life insurance policies were placed into trust, significantly above the market average of 23%. Now, many of The Exeter’s policyholders are recognising the value of beneficiary nomination, with more choosing it as a simpler alternative to a trust form.
A valuable alternative
Beneficiary nomination is a way for a policyholder to name who should receive the policy payout if they pass away. Applicants can nominate up to five beneficiaries during the application process and can update these at any time throughout the life of the policy. Like a trust, beneficiary nomination helps ensure payouts bypass probate and remain protected from Inheritance Tax.
Beneficiary nomination can be a suitable alternative for a range of clients, especially cohabitees, who account for around 40% of couples living together under the age of 451. Without a trust or will in place, the surviving partner would not currently receive the life insurance benefit payable under their partner’s policy.
Jack Southcott, Head of Protection Propositions at The Exeter: “By incorporating beneficiary nomination alongside our wider trust arrangements, we have provided advisers with greater flexibility and more options to help them deliver the best possible outcomes for their clients at the point of claim. Since launching beneficiary nomination in March 2025, we are delighted to see a significant increase in the number of life insurance policies that have a clear and structured arrangement in place for benefit payments. This means that proceeds from a claim can be paid quickly and efficiently to the intended recipients, a small relief at a difficult time.”
|