Royal London has introduced a signature-free beneficiary nomination to its life and critical illness covers on its ‘personal menu’ plans.
The provider said beneficiary nomination provided a simpler alternative to using a trust, and will enable customers to nominate who will receive their payout if there is a claim paid after they die.
Ian Smart, product architect at Royal London, said: “We want to give customers peace of mind that their payout will go to the right person at their moment of truth.
“Currently the only way customers can choose their beneficiary is to complete a trust form, but this can be complex. Beneficiary nomination offers a simpler alternative to make sure the plan holder’s money goes where it should.”
Royal London will automatically pay any benefit after the customer dies to their nominated beneficiary, who can be named as part of the customer’s application.
The nomination can be changed at any time, without the need for probate or the completion of a trust form.
However, the provider recommends that customers should still consider completing a trust form for more “complicated” payout requirements.
Tom Baigrie, CEO at LifeSearch, said: “A major and long-established life office offering beneficiary nomination feels like a breakthrough moment to me.
"The vast majority of protection buying customers don’t want to go through the complexities of arranging trusts and will welcome this straightforward and flexible alternative.
“For the conscientious intermediary it offers a much simpler way of doing the right thing. We all still need to take care of each client’s individual circumstances, rather than default to easy, but this will be right for almost all and it is great to have easy more widely available.”
chloe.cheung@ft.com
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