OCTOBER 2026
INHERITANCE TAX INSURANCE
Indicative Premiums
INDICATIVE PREMIUMS
TO PROTECT ESTATES Life insurance can protect Inheritance Tax liabilities on an estate. Policies can be set up to pay out a guaranteed lump sum on death (or second death) within a specified term or, for whole of life policies, whenever death (or second death) occurs. Based on an Inheritance Tax rate of 40%, £1,000,000 of cover will protect estates with a net value of £2,500,000, ignoring any reliefs or allowances.
GUARANTEED ANNUAL PREMIUMS PER £1M OF COVER
SINGLE LIFE AG E
40
45
50
55
60
65
70
75
80
10 Year Term
£447
£703
£1,098
£ 1 ,7 7 3
£2,931
£4,683
£ 7,1 8 8
£ 1 4 ,1 4 1
£ 2 7, 4 7 6
% of estate
0.01%
0.02%
0.04%
0.07%
0 .1 1 %
0 .1 8 %
0.28%
0.56%
1.09%
20 Year Term
£557
£984
£1, 556
£2,329
£3,854
£ 7, 3 9 5
£ 1 3 ,7 8 9
-
-
% of estate
0.02%
0.03%
0.06%
0.09%
0 .1 5 %
0.29%
0.55%
-
-
Term to Age 90
£1,633
£2,219
£2,960
£4,218
£6,518
£9,093
£ 1 3 ,7 8 9
£21,482
£ 2 7, 4 7 6
% of estate
0.06%
0.08%
0 .1 1 %
0 .1 6 %
0.26%
0.36%
0.55%
0.85%
1.09%
Whole of Life
£ 7, 4 6 5
£8,893
£ 1 0 ,1 8 4
£12,488
£15,483
£20,552
£ 2 7, 3 3 7
£ 3 7, 6 1 3
£ 5 2 ,7 6 8
% of estate
0.29%
0.35%
0.40%
0.49%
0.61%
0.82%
1.09%
1.50%
2 .1 1 %
All premiums quoted in this document are correct as of 1 October 2026 and are indicative only. Premiums assume that lives assured are UK resident and accepted on standard non-smoker underwriting terms. Premiums for non-UK resident lives assured can vary considerably. All policies quoted can be cancelled at any time and do not offer a surrender value.
INDICATIVE PREMIUMS
TO PROTECT ESTATES Life insurance can protect Inheritance Tax liabilities on an estate. Policies can be set up to pay out a guaranteed lump sum on death (or second death) within a specified term or, for whole of life policies, whenever death (or second death) occurs. Based on an Inheritance Tax rate of 40%, £1,000,000 of cover will protect estates with a net value of £2,500,000, ignoring any reliefs or allowances.
GUARANTEED ANNUAL PREMIUMS PER £1M OF COVER
J O I N T L I F E S E C O N D D E AT H AG E S
40
45
50
55
60
65
70
75
80
10 Year Term
£186
£285
£469
£584
£1,219
£1,865
£ 3 ,1 3 4
£5,998
£15,575
% of estate
0.01%
0.01%
0.01%
0.02%
0.04%
0.07%
0 .1 2 %
0.23%
0.62%
20 Year Term
£331
£515
£839
£1,365
£2,540
£4,384
£ 7, 2 0 8
-
-
% of estate
0.01%
0.02%
0.03%
0.05%
0 .1 0 %
0 .1 7 %
0.28%
-
-
Term to Age 90
£ 1 ,1 5 7
£1,643
£2,321
£2,958
£ 4 ,1 1 2
£5,865
£ 7, 9 9 0
£11,569
£15,575
% of estate
0.04%
0.06%
0.09%
0 .1 1 %
0 .1 6 %
0.23%
0.31%
0.46%
0.62%
Whole of Life
£5,869
£6,974
£8,046
£ 9 ,7 6 0
£11,936
£15,436
£19,656
£25,810
£36,460
% of estate
0.23%
0.27%
0.32%
0.39%
0.47%
0.61%
0 .7 8 %
1.03%
1.45%
All premiums quoted in this document are correct as of 1 October 2026 and are indicative only. Premiums assume that lives assured are UK resident and accepted on standard non-smoker underwriting terms. Premiums for non-UK resident lives assured can vary considerably. All policies quoted can be cancelled at any time and do not offer a surrender value.
INDICATIVE PREMIUMS
TO PROTECT GIFTS Life insurance can protect Inheritance Tax liabilities on gifts (Potentially Exempt Transfers). Policies can be set up to pay out a guaranteed lump sum on death if the donor dies within seven years of the gift being made. The cover amount under such policies will be set up to reduce in line with taper relief. Based on an Inheritance Tax rate of 40%, £1,000,000 of cover will protect gifts of £2,500,000, ignoring any reliefs or allowances.
SINGLE LIFE AG E
40
45
50
55
60
65
70
75
80
Year 1
£428
£642
£986
£1,490
£2,477
£3,961
£6,281
£10,577
£20,596
Year 2
£428
£642
£986
£1,490
£2,477
£3,961
£6,281
£10,577
£20,596
Year 3
£428
£642
£986
£1,490
£2,477
£3,961
£6,281
£10,577
£20,596
Year 4
£345
£521
£797
£1,206
£2,012
£3,267
£ 5 ,1 9 0
£8,872
£ 1 7, 2 1 3
Year 5
£261
£398
£606
£920
£1,542
£2,536
£4,043
£ 7, 0 0 5
£13,658
Year 6
£178
£273
£414
£632
£1,058
£ 1 ,7 5 0
£ 2 ,7 8 8
£4,931
£9,648
Year 7
£91
£141
£212
£325
£554
£900
£1,440
£2,604
£5,061
Total Payable
£ 2 ,1 5 8
£3,260
£4,985
£ 7, 5 5 3
£12,607
£20,335
£32,306
£ 5 5 ,1 4 3
£ 1 0 7, 3 6 7
% of gift
0.09%
0 .1 3 %
0.20%
0.30%
0.50%
0.81%
1.29%
2.21%
4.29%
All premiums quoted in this document are correct as of 1 October 2026 and are indicative only. Premiums assume that lives assured are UK resident and accepted on standard non-smoker underwriting terms. Premiums for non-UK resident lives assured can vary considerably. All policies quoted can be cancelled at any time and do not offer a surrender value.
Rob May Executive Director rmay@spf.co.uk 020 7330 8586 John Warren Director jwarren@spf.co.uk 07797 741 106 Henry Wood Associate Director hwood@spf.co.uk 020 7330 8519
SPF Private Clients is not tied to any provider or product. With access to the whole of the market, we conduct thorough research to recommend the most suitable solutions tailored to our clients’ needs. There is no fee payable for our service. We will however receive commission from the insurer. SPFPrivate Office is a trading style of SPF Private Clients Limited. SPF Private Clients Limited is authorised and regulated by the Financial Conduct Authority (FCA). The FCA does not regulate taxation advice, inheritance tax planning, cashflow modelling, wills or trusts.