Gift inter vivos policies are a niche type of life insurance product designed to cover inheritance tax liability on a potentially exempt transfer (PET).
If you're searching for life insurance you may have come across a type of policy called gift inter vivos (GIV).
While this product can be valuable in the right circumstances, it's a particular type of term life insurance that's only likely to interest you if you have a very specific need related to the planning of your inheritance.
A GIV policy can be used to cover inheritance tax liability† on a gift that's been made in an individual's lifetime - perhaps a cash lump sum, for example.
If the individual making such a gift lives for over seven years then it becomes free of inheritance tax liability, but a GIV policy is designed to cover the liability should the individual die in that seven-year period.
The amount of inheritance tax liability decreases by percentages over time and the GIV policy mirrors this, the amount of cover dropping over the term of the product.
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