What is inheritance protection on equity release?
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In short: Inheritance protection guarantees ring-fence a percentage of your home's value for beneficiaries — typically 10%–50% — regardless of how much the loan grows. You can usually release less cash in exchange for preserving that slice of the property.
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Without protection, loan growth competes with house-price growth. Protection sets aside a minimum percentage of the home's value at plan start that the lender cannot absorb at sale.
The trade-off is lower maximum loan-to-value. If you need £80,000 but protect 30% of a £300,000 home, the lender caps release below what an unprotected plan might offer.
Protection does not guarantee a cash inheritance — if prices fall sharply, beneficiaries may still receive little after the protected slice and loan are settled.
Discuss with your equity release adviser alongside downsizing and gifting strategies.
Primary source: equityreleasecouncil.com/standards
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