Norwich Union is today launching a Guaranteed Whole of Life product, offering a guaranteed cash lump-sum upon death with no dependency on investment performance.
- New protection product offers a guaranteed level of death benefit
- No reliance on investment performance
Norwich Union is today launching a Guaranteed Whole of Life product, offering a guaranteed cash lump-sum upon death with no dependency on investment performance.
The Guaranteed Whole of Life product can be used for inheritance tax planning and family protection (as well as business planning) to provide:
- Cover against inheritance tax liability
- Financial support for a spouse, partner or dependants
- Insurance for a key man within a business1
The policy can be written under trust, ensuring it does not form part of an individual’s estate for inheritance tax purposes.
Norwich Union is the only provider to offer three payment options for such a product:
- A single payment option can be used to reduce the value on an estate, thereby reducing inheritance tax liability
- Annual or monthly payments can be made by customers on a budget wishing to leave a set amount to their dependants
- "Limited premiums" (where higher monthly payments can be made over a shorter period of time) can also be taken, helping to plan for any future drop in income ie retirement
Guaranteed Whole of Life also offers the option to increase the life insurance each year to prevent erosion by inflation2.
Louise Colley, head of protection at Norwich Union, said: “We have carried out extensive research with both financial advisers and customers and created a flexible product to meet people’s needs.
“Guaranteed Whole of Life can be used in many different ways, such as IHT and business planning in addition to offering protection for dependants. A factsheet is available for customers, highlighting the benefits of writing this kind of policy under trust.
“The flexible payment options available also allow this product to be tailored to meet the needs of customers and the guaranteed, pre-arranged lump sum payout will give advisers and clients a new level of confidence in planning for the future.”
Example premiums include:
(The actual cost depends on the level of cover chosen and the customer’s personal circumstances)
Premium p.m.
| Single male 50 year old, ns, Ł100,000 sum assured | Ł149.75 |
| Joint life 60 year old couple, ns, Ł50,000 sum assured | Ł79.82 |
| Single male 55 year old, smoker, Ł50,000 sum assured | Ł133.27 |
| Joint life 55 year old couple, smokers, Ł50,000 sum assured | Ł86.59 |
-ends-
1. Key man insurance can be essential for those whose business relies on a particular individual. The policy pays out when the insured dies; however the business owns the policy and pays the premium. If the insured dies, the business is the beneficiary and will receive the policy payout. This payout can then be used to help ensure the livelihood of the company, by paying off company debt for example.
2. Option to increase premiums to account for inflation is only available on monthly or annual premiums, and not on those who pay a one-off payment.
Press office contacts:
Rob Pell 01904 452659 Out of hours 07800 699563
Cheryl Cox 01904 452791 Out of hours 07800 695275
Louise Soulsby 01904 452617 Out of hours 07800 699 526
Notes to editors:
Guaranteed Whole of Life is available through all Norwich Union distribution channels.
Norwich Union is the UK’s biggest insurer. It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS 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