7 July 2004
IHT planning represents a huge opportunity for advisers and Zurich is launching a new whole of life plan aimed at that market. The Zurich Adaptable Life Plan (ZALP) launches on 19 July in response to feedback from both advisers and customers who tell us that they want a product that fulfils one specific need, namely a cash sum on death, at a competitive price. The plan has the flexibility to cover the majority of clients’ IHT protection needs.
The Plans offer market-leading rates against the key industry providers. The table below provides examples for £200,000 of level joint-life-second death cover, for a male and a female of equal ages who have standard rates with no waiver of contribution.
| Provider |
50 Next Birthday |
60 Next Birthday |
70 Next Birthday |
| Zurich Adaptable Life Plan |
115.25 |
211.25 |
413.85 |
| AXA |
170.60 |
316.57 |
608.17 |
| Legal and General |
166.32 |
302.87 |
578.83 |
| Scottish Provident |
150.86 |
258.06 |
454.67 |
| The Skandia Plan |
127.59 |
231.99 |
- |
| Skandia Protect |
182.37 |
301.83 |
508.78 |
| Standard Life |
284.20 |
454.00 |
766.00 |
Competitor rates sourced from The Exchange as at 27 May 2004. Gap indicates quote not supported on the Exchange.
The Zurich Adaptable Life Plan offers a number of leading benefits including indexation of cover in line with the Average Earnings Index (AEI) with no maximum percentage. This is a major benefit to clients when the nil rate band rises broadly in line with the Retail Price Index while the clients’ assets are often rising considerably faster. The Plan also offers underwriting-free-increases in response to changes in IHT legislation.
Peter Kelly, Zurich’s Protection Management Director, commented: “Over the last five years, house prices have risen by an average of 107% nationally and, over the same period, the nil-rate band for IHT has increased only by 12%. It doesn’t take a mathematician to see that there are many more individuals who are likely to be hit by inheritance tax – this is not just a concern for the very wealthy. In response, we have stripped out the unnecessary elements, such as surrender values, to focus our new whole of life plan as an IHT planning tool at market beating rates.”
Zurich Adaptable Life Plan
| Life/Lives Assured |
Single Life, Joint life first death (JLFD) and Joint life second death (JLSD) |
| Age Limits |
Min 17, max 84 (single life), 70 (JLFD) and 84 (JLSD) |
| Underwriting Limits |
Max without Medical Attendant's Report £600,000
Max without Medical Evidence £1m |
| Surrender Value |
None |
| Large case underwriting specialists |
On Cases over £1m |
| IFA commission |
160% of annual premium payable over 4 years |
| Optional Benefits |
| Indexation: |
To the Average Earnings Index |
| Waiver: |
Any occupation 3 month deferred up to age 65 |
| Special Event Benefit: |
Underwriting free increases up to half the underwritten level of cover on marriage, divorce, birth of children, adoption (or £60,000 whichever is lower). Up to the initial sum assured (or £60,000 whichever is higher) for mortgage increases. Unlimited underwriting-free increases resulting from changes to IHT legislation. |
|
| Large Case underwriting specialists |
On cases over £1m |
| IFA commission |
160% of annual premium payable over 4 years |
-Ends-
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