Protection policies placed in trust nearly triple in five years, Stonebridge finds
The proportion of protection policies placed in trusts with one of Stonebridge’s six key providers rose from 5.3% to 14.3% over five years.
The proportion of protection policies placed in trusts with one of Stonebridge’s six key providers rose from 5.3% to 14.3% over five years, recent data revealed.
The figure increased from 13.1% in the past year.
Across its adviser network, close to 25% of policies were placed in trust on average.
John Scrivens (pictured), sales director at Stonebridge, said: “When people choose policies, they are often solely focused on the amount of cover, but their loved ones need the money in their pocket in order to benefit from it. Time can be a real factor.
“Using trusts protects beneficiaries from the nightmare of vital funds being locked up in probate, which makes them a crucial pillar of the advice brokers should be giving consumers.
“All too often, funds are withheld from the bereaved in their time of need because a trust wasn’t considered when the policy was taken out.”
Scrivens added: “Fortunately, times have changed and advisers are increasingly conscious of the circumstances in which trusts are most appropriate and their benefits.
“We’ve been banging this drum for a long time, and it has rightly been identified by the FCA as an important focus area.
“The industry will be better for it, and consumers won’t be left needlessly vulnerable.”
He said: “Policies shouldn’t be placed in trust automatically, but we’re pleased that our network members are identifying increasing numbers of cases where trusts should be used.”
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