A simple and cost-effective solution to cover the 2-year inheritance tax (IHT) liability on Business Relief-qualifying investments.

What is Business Relief?Introduced in 1976 and also known as Business Property Relief, Business Relief (BR) is a tax relief provided by the UK Government as an incentive to increase investment in certain types of trading businesses:

• Shares in companies not listed on a stock exchange

• Shares in companies listed on the Alternative Investment Market (AIM)

• Interest in a qualifying business, e.g. a partnership

Investment IHT Liability Insurance

WEALTH PROTECTION | AIG LIFE

!

Investment in a BR-qualifying scheme Death within 2 years Death after 2 years

Value at death £200,000 £200,000

Inheritance tax liability (@ 40%) * £80,000 £0

Net value to estate £120,000 £200,000

* Assumes the investor has an estate valued above the nil-rate band.

Shares in qualifying businesses attract 100% BR provided they have been held for at least 2 years at the time of death - after which they are exempt from any IHT liability.

Highlights

ü Quick & easy application process

ü Joint-Life Second Death option for joint applicants

ü Fully online journey - including trusts

ü Up to £400,000 cover with no financial questions

ü High limits before medical required

ü No automatic requirement for a GP Report

ü Monthly or annual premiums

ü Maximum age at entry 87 (next birthday)

If you would like to know more about this or any of AIG Life’s other Wealth Protection

solutions, please call our Sales team on 0345 600 6829 or email sales@aiglife.co.uk.

visit www.aiglife.co.uk, follow us on @AIGLifeUK and connect with us on AIG Life Ltd.

AIG Life Limited. Telephone 0345 600 6820. If calling from outside the UK, please call +44 1737 441 820. Registered in England and Wales. Number 6367921. Registered address: The AIG Building, 58 Fenchurch Street, London EC3M 4AB. AIG Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The registration number is 473752.

EDCO 2642- 0120 For adviser use only. Not for customer use or publication.

The need for life coverIf the investor dies within 2 years of holding the shares, the entire investment will be subject to IHT. Life insurance can be used to cover that 2-year period of IHT liability.

When written into trust the proceeds of the policy pass to the beneficiaries without giving rise to IHT.

For couples investing jointly a Joint-Life Second Death (JLSD) policy can be used, as assets pass between spouses /civil partners free of IHT, and therefore tax is not payable until the second person dies.

The AIG Life solution

AIG Life Limited (AIG Life) have a simple and cost-effective solution to meet this wealth protection need.

Indicative annual costs

Single life aged

Investment £100,000 £200,000 £500,000 £1,000,000

Life Cover £40,000 £80,000 £200,000 £400,000

70Annual Premium £362.57 £688.86 £1,549.09 £2,793.67

% of Investment 0.36% 0.34% 0.31% 0.28%

80Annual Premium £1,254.35 £2,452.56 £5,846.99 £10,613.38

% of Investment 1.25% 1.23% 1.17% 1.06%

* Correct at 18/12/19. Life cover 40% of investment. Assumes non-smoker, accepted at standard rates. Annual premiums (guaranteed, level).