Hi everyone, I am taking another focus on Trusts this week. This time I am looking specifically at critical illness cover, as there are some potential issues that could be faced for vulnerable clients, including people who are experiencing economic abuse.

There is a huge drive in our industry to place policies into Trust. It’s the kind of thing where I might potentially do a compliance fail with my team if a policy hasn’t been put in Trust where there’s a really simple online system to do so. (I know, I’m a battle-axe!) But, they are really so important and there are not many occasions when a Trust isn’t relevant or easy to do.

However, there’s an emerging problem with critical illness policies placed into Trust.

The key takeaways:

• To make a claim on a critical illness policy, all trustees must sign the claim form
• A critical illness policy placed within a Trust could be a vehicle for an abusive Trustee to prevent a client from receiving vital financial support
• Insurers are aware of this issue, but there are no ways to improve the process, with current Trust formats

Next time, Alan will be back with me and we are going to be going through protection insurance options for people living with cystic fibrosis. If you have tried to get cover for clients in the past with cystic fibrosis, you’ve probably seen how difficult it can be. We’re going to be taking you through the different options that you can consider.

Remember, if you are listening to this as part of your work, you can claim a CPD certificate on our website, thanks to our sponsors NextGen Planners.