From: "Robin Graham" 
Newsgroups: uk.finance
Subject: Re: Death in service benefit vs life insurance
Date: Mon, 6 Sep 2004 07:11:22 +0000 (UTC)


"Shane Cook"  wrote in message
news:chg711$6df$1@titan.btinternet.com...
> Another reason, it appears DIS benefit is not taxable for Inheritance Tax,
> where as life insurance is. That's one HUGE reason to pick one over and
> above the other.

No! Whatever the type of life cover, it can be paid out free of IHT. It
needs to be in trust to your beneficiaries, not be paid into your estate.
DIS is just automatically set up in trust, whereas life assurance won't be
automatic. But it's no big deal to do it.

Rob Graham