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.
Remember that if you need more help in deciding on your life insurance options you can speak to our partners LifeSearch for fee-free, impartial advice.
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