Pays the sum assured should the policyholder die with in a predetermined term. Not normally suitable for IHT planning, as the policy must be able to perform it’s function i.e. pay out no matter when the policyholder dies. This type of plan can be of use if the potential for IHT is for a limited duration, such as the clients intending to take themselves out of UK tax jurisdiction. Moving abroad or planning to gift their estate to a charity at some predetermined time are among circumstances when this might apply.