Surge in Inheritance Tax on life Insurance
Recent budget reforms have increased interest in life insurance policies designed to cover inheritance tax (IHT) liabilities. Initially intended for the wealthy, IHT now affects more families due to rising property prices and new regulations. Policies such as whole of insurance offer tax-free lump sums to beneficiaries, assisting in covering IHT payments and preventing asset sales like family homes.
- Mental Health Impact on Life Insurance
TAL Group CEO Fiona MacGregor has highlighted the growing impact of mental health issues on national productivity and the insurance industry. A significant portion of claims is related to living benefits, underscoring the need for insurers to address mental health in their offerings. TAL is leveraging technology, including AI, to enhance customer experience and operational efficiency, aiming to improve claim processes and support for policyholders.
- Record Growth in Canadian Life Insurance Premiums
In 2024, Canadian insurance new premiums increased by 8%, setting a new record. This growth reflects a strong demand for insurance products in Canada, indicating a robust market and a growing awareness of the importance among Canadians.
These developments underscore the evolving landscape of the insurance industry, with a focus on addressing mental health, adapting to tax change,, and experiencing significant market growth.
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