Will my payout be taxed?

The payout is usually free of all UK income tax and capital gains tax. The amount paid might be subject to inheritance tax, depending on the total value of the life insured’s estate. For more info about this, see gov.uk/inheritance-tax. If the life insured resides outside the UK at the time of a claim, the taxes of the country of residence could apply to the amount received (refer to ‘Moving abroad’ in the policy wording for more details).