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Life Insurance Investment Policies

The recent case of Joost Lobler considered the case of someone who had been hit by a substantial and disproportionate tax bill having made a disadvantageous choice in how to realise his investment in a cluster life insurance policy.  However, this was not the first instance of investors coming to grief in this way – and even before the Lobler case, the ABI has been considering how the risks to customers in this area might be mitigated.

We are hopeful that legislation will be enacted in due course to limit the possibility of customers being caught out in this way in the future.  However, in the meantime the ABI has developed a statement of good practice designed to help providers mitigate the potential for problems in this area.