If Inheritance Tax (IHT) is a concern for you, taking out a life insurance policy could mean your estate passes to loved ones intact. With some careful planning, a life insurance payout can cover your IHT liability and ensure assets are passed on to your loved ones. Planning what will happen after your death isn’t easy, but being proactive is important and can help ensure your assets are passed on effectively. £2.7 billion paid in IHT between April and August 2021 According t