If you don’t specify who the money will go to, when you die it will automatically be paid in to your estate. This may be subject to Inheritance Tax. Please speak to a legal adviser if you’re unsure how this could affect you.
If you take out the Funeral Benefit Option.
When you die, the cash lump sum will be paid directly to a Dignity and a Dignity funeral provider will provide your funeral.
If you write the policy into a Trust.
When placing the policy in trust you specify who you want to be a beneficiary and who you want to look after and control the policy (the trustees). A trust is a way of giving away something of value (in this case the life insurance policy) for the benefits of others (the beneficiaries), but without giving them full access to and control over the policy. If you wish to proceed with a trust arrangement, please contact Legal & General.
If you’re unsure whether a Trust is the right option for you, it’s important you discuss this with a legal adviser, who may charge you.