Norwich Union is introducing a new special offer on its Trustee Investment Product (TIP) product used for Income Drawdown. From 6 April any pre or post retirement product investing in a new TIP will benefit from the changes outlined below.
Norwich Union is introducing a new special offer on its Trustee Investment Product (TIP) product used for Income Drawdown. From 6 April any pre or post retirement product investing in a new TIP will benefit from the changes outlined below.
The main features of this offer are the removal of the plan management charge along with the early encashment charges so that the only charge remaining is the annual management charge of just 0.625%*. There will be 100% allocation rate and no loyalty bonus. Overall, this makes the product simpler and a much more flexible proposition for IFAs and increases value for clients.
Norwich Union forecasts that the Income Drawdown market will be a growth area as a result of Pensions Simplification.
Simon Warsop, head of retirement product development at Norwich Union, said: "The feedback we have had from IFAs is that simplicity and flexibility are the key factors for both IFAs and their clients. This special offer addresses both of those needs and combined with the Norwich Union brand and our financial strength, we believe that we have developed a very strong proposition."
Quotes will be available from 8 March for IFAs wishing to pre-sell to their clients.
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Press office contacts:
James Evans 08703 66 68 78 Out of hours 07790 487105
Louise Goffee 08703 66 68 70 Out of hours 07810 057362
David Gwyer 08703 66 68 71 Out of hours 07800 699508
Lorna Wiltshire 08703 66 68 78 Out of hours 07788 471849
Notes to Editors
* SIPP fees may apply – please ask for details
- A Trustee Investment Plan (TIP) is available through the Norwich Union Self Invested Personal Pension (SIPP) for those wishing to invest in insurance company managed funds. The Norwich Union TIP is also available to those investing in other company’s SIPPs or members of SSASs. Within the TIP the client can choose to save pre-retirement monies or utilise the TIP to do income drawdown, phased retirement or phased income drawdown.
| Summary of changes | Current plan | Special offer |
|---|---|---|
| Early encashment charges | Year 1 – 7.5% Year 2 – 6% Year 3 – 4.5% Year 4 – 3% Year 5 – 1.5% | Year 1 Year 2 Year 3 Nil Year 4 Year 5 |
| Plan management charge | 0.75% for 5 years | Nil |
| Loyalty units | 0.25% from year 11 onwards | Nil |
| Commission | Initial 4% plus uplift FBC up to 0.5% pa (explicitly charged) | Initial 4% plus uplift less 3% FBC up to 0.5% pa (explicitly charged) |
| Allocation | 101% | 100% |
Key timings and transitional arrangements
Illustrations/Quotes
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New business illustrations will be available from Monday 8 March 2004.
Re-quotes on the "old" terms would only be accepted between 8 March 2004 – 7 May 2004 where a copy of the original quote or the full quote number (with all the alpha & numerics) was provided dated in 2004.
Applications
- Applications for new terms will be accepted from 6 April 2004. We will allow three months from 8 May 2004 (cut off 8 August 2004) for applications to be received requiring the "old" terms which must be accompanied by a copy of the full quote illustrating the terms required.
Any application received from 6 April.2004 onwards without the copy of a quote will attract the "new" terms.
The offer may be withdrawn or varied at any time at Norwich Union's discretion
- Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 70% of the company’s long-term savings business.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.