A proposal to aid low income families by speeding up life insurance payments is to be discussed by the ABI.
The idea would allow partial payment dependent on the estate size even if the life policy had not been put in trust.
Stephen Haddrill, director general of the ABI, said: "We need a new way of dealing with life insurance payments, which will help to avoid any financial hardship that people can suffer while they are waiting for lengthy legal processes after the death of a loved one to conclude."
At present, according to the ABI, it can take months for any payment to be made because in most cases the sum assured becomes part of the individual's estate.
This can hit poorer families hard as they are most likely to need money immediately after the death of a breadwinner, but are least likely to have taken steps to put the life policy in a trust.
Her Majesty's Revenue and Customs would need to approve the process allowing a tax free payment to be made.
It will be discussed at the ABI's Savings, Assets and Protection conference next week.
