Section 72 Life Insurance Policy Advice
A Section 72 Life Insurance policy can protect your loved ones’ rightful inheritance.
Inheritance Planning & Protection for You and Yours
While no one wants to think about such things, it’s important that a person’s loved ones’ rightful inheritance is protected in the event of bereavement. To ensure this, a Section 72 Life Insurance policy is the safest option.
At GSB Capital Ireland, our team, led by Managing Director Michael Cunningham, has years of experience providing inheritance planning advice. We ensure our clients choose the right Section 72 Life Insurance policy. This is not only for their benefit, but for the benefit of their family.
To learn more about Section 72 Life Insurance policies and how they can protect your inheritance, contact GSB Capital Ireland today.
What is a Section 72 Policy?
A Section 72 policy is a Revenue-approved, whole of life insurance policy. It’s designed to cover Capital Acquisitions Tax (CAT), otherwise known as Inheritance Tax, and is paid out to the beneficiaries to cover their tax bill when they inherit assets, such as a property. Section 72 premiums are exempt from Capital Acquisitions Tax when they’re used to cover inheritance tax.
Why Consider a Section 72 Life Insurance Policy?
Do you have a valuable asset you want to pass down to beneficiaries, such as a property? If so, the best way of protecting them from a hefty Capital Acquisitions Tax bill is to take out a Section 72 policy. Doing so not only gives you time to get your estate in order, but it also ensures your beneficiaries are protected when they inherit your assets.
Avoiding Tax Debt
When a beneficiary inherits an asset such as a property, they can face a huge tax bill that they may not be able to pay. This can result in burdening the cost for years to come or selling off the property. A Section 72 policy protects against this.
Protecting Your Estate
A Section 72 policy will protect the integrity of your estate and setting it up now will give you the time to ensure everything is in order.
Peace of Mind
One of the greatest benefits of any life or health insurance cover is the peace of mind it provides. Knowing your loved ones won’t be burdened by a tax bill upon inheriting your assets provides great peace of mind in the present, and into the future.
How Does a Section 72 Life Assurance Policy Work?
While a Section 72 policy protects the assets set out in your will, e.g., a family home, land or money, from Capital Acquisitions Tax, the usual scenario people apply it to is a property.
For that reason, imagine that a parent wants to leave a property to their child, with the following steps explaining how a Section 72 policy works:
A Section 72 policy will be set up in the parent’s name, with the parent specifying the asset (property) and the beneficiary among other details.
Section 72 premiums are paid during the parent’s lifetime, with the amount agreed upon at the time of the policy’s creation. These premiums are determined by several factors, including age, health and the value of the payout.
Upon the death of the parent, the Section 72 policy pays out a tax-free sum to the specified beneficiary.
All sums are to be used to pay the Capital Acquisitions Tax and only that. The funds cannot be used to cover anything else
Who is a Section 72 Life Insurance Policy For?
Given its intended use, a Section 72 policy can serve a vast number of people. For instance, those in possession of significant assets, such as several properties, and their beneficiaries will benefit from such insurance. A parent who wants to leave the family home or money to a child can do so without having to worry about leaving behind a large tax bill. Similarly, a Section 72 policy makes sense for business owners and property investors.
Essentially, a Section 72 policy who believes their assets or estate will be subject to significant inheritance tax and wants to ensure their beneficiaries avoid the burden of paying it.
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Section 72 Life Insurance Policy FAQs
The cost of an inheritance planning insurance policy like a Section 72 varies depending on several factors, including:
- Age: Premiums increase with age, and the age limit to create a Section 72 policy is 74.
- Health: Pre-existing health conditions will affect premiums.
- Smoking: People who smoke tend to pay higher premiums.
- Coverage amount: The greater the inheritance tax liability, the higher the premium.
- Joint policies: If the policy covers two people, the premium will be higher.
To find a Section 72 life assurance policy that works for you, contact GSB Capital Ireland today and a member of our team will happily discuss your options.
A Section 72 policy is a whole of life insurance policy designed to cover Capital Acquisitions Tax (CAT), otherwise known as Inheritance Tax. It is paid out to the beneficiaries to cover their tax bill when they inherit assets, such as a property. The Section 72 sum paid out must only be used to cover Capital Acquisitions Tax. In this sense, you could think of a Section 72 policy as Life Insurance for inheritance tax.
On the other hand, standard Life Insurance pays out a tax-free lump sum to the beneficiaries to be used for any purpose.
Yes, there is. In Ireland, the age limit for setting up a Section 72 Life Insurance policy is 74. So, should you wish to set up such a policy, do so before your 75th birthday. If you pass your 75th birthday without having created a policy, the cover will be unavailable. If you’re thinking of setting up a Section 72 policy, contact GSB Capital Ireland today and our experts will talk you through your options.
No, absolutely not. In a situation where property prices are high, people with modest estates will breach the inheritance tax threshold. Similarly, those with greater assets, such as an Approved Retirement Fund (ARF) or valuable homes, will also want to protect the inheritance their loved ones should receive. Thinking of it more broadly, an inheritance tax insurance policy like this simply moves your money from a taxed situation to a Capital Acquisitions Tax free one. For these reasons, a Section 72 Life Insurance policy is valuable to all, no matter the individual’s net worth.
Section 72 Policies, the GSB Capital Ireland Way
At GSB Capital Ireland, we know you’ve worked hard in life to earn what you’ve got. We also know your assets are important to you, and that you want to protect them for the next generation. That’s why we will gladly work with you to find a Section 72 policy that ensures your beneficiaries avoid a massive tax bill, in turn giving you peace of mind to enjoy your life now.
Client First Approach
When it comes to cover like a section 72 life assurance, the team at GSB Capital Ireland knows exactly what to look for, and what to avoid. Our experts will assess your needs on their own merits and suggest Section 72 policies that meet your targets. The security of your beneficiaries’ inheritance is in safe hands when you take advice from GSB Capital Ireland.
Independent Advisors
As independent Section 72 advisors, our only concern is finding the policy you need. So, when you ask us for help when choosing a Section 72 policy, we will do so without external pressures, keeping the focus on you throughout.
Full Support
Section 72, or any financial advice, wouldn’t be complete without full support. By choosing GSB Capital Ireland, you will have a financial advisor to call on whenever you need, with our advice backed up by years of experience and success.
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