Royal London has made beneficiary nomination the default option for eligible customers to enable families to receive financial support quickly.
The change means beneficiary nomination is automatically selected within eligible protection applications, while advisers still have the option to choose a trust if that better suits their client’s needs.
Beneficiary nomination allows customers to specify who should receive the proceeds of their protection policy in the event of their death. Without beneficiary nomination or a trust, policy proceeds may become part of an estate, potentially delaying payment while probate is completed.
Alongside the change, new adviser guidance will help advisers identify when beneficiary nomination may be suitable and when a trust may be more appropriate.
Craig Paterson, chief underwriter at Royal London, said: “Beneficiary nomination helps make sure customers’ wishes are recorded in advance, so families can access support more quickly when it matters most.
“Good protection advice is about more than selecting the right level of cover. It’s also about helping clients think through what happens when a claim is paid and ensuring their wishes are clearly recorded.
“Beneficiary nomination can provide a straightforward solution for many clients, while trusts continue to play an important role where greater control or more complex planning is required.
“The most important thing is that these conversations happen and that advisers are equipped to help clients choose the option that best reflects their circumstances.”
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