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The short answer
Yes, someone living in Nigeria can benefit from a UK life policy, but insurers generally pay a person with a UK bank account. Legal & General, for example, says a beneficiary can live overseas but the person legally entitled to the money must have a UK bank account, so in practice a trustee receives the payout and sends it on. Writing the policy in trust is the usual way to name them.
Many Nigerians in the UK take out life insurance with two groups in mind: a spouse and children here, and parents or siblings at home who rely on monthly support. The policy can protect both, but only if it is set up so the money can actually reach Nigeria. That depends on three things: whether the policy is in trust, who the trustees are, and whether someone with a UK bank account is legally entitled to receive the money.
Why a trust matters
Without a trust, a life policy normally pays out to your estate. Legal & General explains that, without a trust, the payout goes to the policy's legal owner or, if they have died, their personal representative, and is then distributed through probate. That takes time, and if there is no will, intestacy rules decide who benefits; a parent in Nigeria may not be first in line.
MoneyHelper says that putting a policy in trust means it is not treated as part of your estate, so it can be paid outside probate and is usually outside Inheritance Tax. GOV.UK sets the Inheritance Tax threshold at £325,000, with 40% charged above it, so for some families keeping a large policy outside the estate makes a real difference.
Two kinds of trust
| Trust | How it works | Suits |
|---|---|---|
| Discretionary | You name possible beneficiaries; trustees decide who receives what and can change it | Families whose needs may change, e.g. children growing up, parents ageing |
| Absolute (bare) | Beneficiaries and shares fixed when set up; Legal & General says you cannot change or add beneficiaries later | When you are sure who should benefit and in what shares |
Ask your insurer whether it provides its own trust forms and which types they allow. Choose the type carefully: an absolute trust naming your mother as sole beneficiary cannot later be changed to include your children.
Getting the money to Nigeria
Legal & General says that a beneficiary can live overseas but the person legally entitled to the money must have a UK bank account, and that in practice a trustee, executor or administrator usually receives the funds and transfers them abroad. That makes the choice of trustees the most important decision.
- At least one UK-based trustee. A spouse, sibling or trusted friend in the UK with a UK bank account who can deal with the insurer.
- A second trustee so the trust can still act if one cannot. You could add a family member in Nigeria as an additional trustee.
- Clear wishes. A letter of wishes kept with the trust saying, for example, that your mother should receive a monthly sum for life.
- Documents. The insurer will need a death certificate. If you die in Nigeria, your trustees will need the Nigerian certificate, possibly authenticated; see death certificates for UK insurance.
Children and young relatives
Legal & General says children can be named as beneficiaries only through a policy written in trust and cannot receive the funds directly until they are 18 or older. If you want money to go to younger siblings or nieces and nephews in Nigeria, a discretionary trust with UK-based trustees who can pay school fees directly is usually more workable than naming them outright.
Worked example (illustrative)
Bisi, in Leeds, has a £200,000 level term policy. She writes it into a discretionary trust and names as possible beneficiaries her husband, their two children and her mother in Ibadan. Trustees: her husband and her brother in Manchester. Her letter of wishes asks that £300 a month be sent to her mother for as long as she lives, with the rest held for the children. If Bisi dies, her brother claims with the death certificate, the money is paid to the trustees' UK account, and they send the monthly sum to Nigeria.
At £300 a month, ten years of support for her mother would use £36,000 of the £200,000, leaving £164,000 for the children in this example.
What to check first
- Is your existing policy already in trust? Ask the insurer.
- Does the insurer's trust form allow discretionary trusts and overseas beneficiaries?
- Do you have at least one trustee with a UK bank account?
- Have you written a letter of wishes?
- Have you told your trustees where the policy documents are?
MoneyHelper says you usually have a 30-day cooling-off period after buying a policy. This is information, not financial or legal advice; trusts have tax consequences in some cases, so ask the insurer or a regulated adviser. See also life insurance for Nigerian parents in the UK.
Where Pryme fits
When trustees later send regular support to a parent in Nigeria, a Pryme account lets them hold pounds and naira, convert with the rate and fee shown first, and send to a Nigerian bank account, with a receipt for each payment for the trust's records.
Questions people ask
Can my mother in Nigeria be the beneficiary of my UK life insurance?
Yes, but insurers generally pay someone with a UK bank account. Legal & General says a trustee or executor usually receives the funds and transfers them abroad. A trust is the usual way to name her.
What is the difference between a discretionary and an absolute trust?
In a discretionary trust, trustees decide who benefits and can change it. In an absolute trust, beneficiaries are fixed and cannot be changed.
Does life insurance in trust avoid Inheritance Tax?
MoneyHelper says a policy in trust is not treated as part of your estate, so it can usually be paid outside probate and Inheritance Tax.
Who should be trustee for a family in Nigeria?
At least one person in the UK with a UK bank account, plus a second trustee, who could be a relative in Nigeria.
Sources
- Legal & General: Who should be your life insurance beneficiary? (18 Aug 2026) · accessed Oct 2026
- MoneyHelper: What is life insurance? · accessed Oct 2026
- GOV.UK: Inheritance Tax · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.