The Intermediary –- May 2026 - Flipbook - Page 23
P RO T E C T I O N
In focus
LEST PROTECTION
TO CLAIM?
cover. Because Sue wants her
two adult children to receive the life
cover proceeds, the adviser suggests
she names them as beneficiaries
during the application. That means
any life cover payout can be made
quickly, without waiting for probate.
The adviser also explains that
beneficiary nomination is particularly
suitable here because Sue’s
circumstances are straightforward. If
her children were younger, or if there
were other planning considerations, a
trust might be more appropriate.
There is also a practical angle that
shouldn’t be overlooked. Free cover
periods are designed to protect clients
from day one. Even where a trust is
intended, starting with a beneficiary
nomination can help ensure that any
claim during those early stages can
be paid quickly, rather than being
delayed by paperwork or process.
Keep moving
None of this diminishes the value of
trusts. In many cases, they remain
the gold standard. But the real issue in
2026 isn’t whether trusts are good or
bad. It’s whether the outcome works
when the client’s family needs it most.
Ruth Gilbert of Insuring Change,
who designed the contractual
beneficiary nomination solution for
insurers, notes: “Direction of the
benefits payable aer death is too
oen the key missing piece for single
own life policies, akin to selling a car
without a steering wheel.
“Low takeup rates of trusts, the
classic solution for this, suggests a
more straightforward option is needed
where trusts aren’t being used.”
In a world of persistent protection
gaps, increasing estate complexity
and slower system processes, advisers
need solutions that keep conversations
moving. Beneficiary nomination
is not a replacement for good estate
planning, but used in the right cases,
it can be a powerful part of it. ●
