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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Life Policies: types of policy: term, term assurance or temporary policy

A term, term assurance or temporary policy is one in which benefits are payable on the death of the life assured (IHTM20081) if it occurs before a specified date or event. If the specified date or event occurs first, no benefits are payable under the policy.

Term Assurance policies can be linked with pure endowment policies (IHTM20103) for the purpose of avoiding Inheritance Tax. There is further information at IHTM20401.