18 October 2006. With house prices continuing to rise and the cost of the average London property now reaching £286,369*, exceeding the minimum inheritance tax threshold of £285,000, IHT is now becoming an issue for an increasing number of homeowners.
With the family home now often forming the most significant asset of any future estate, consumers need to be aware of how to plan ahead. There are various ways to mitigate the potential IHT liability, but for some, ensuring funds are available to pay any tax liability will be the most appropriate route. A whole of life plan coupled with the right trust advice can be a powerful solution.
The Zurich Adaptable Life Plan is a form of life cover which can be written in trust to provide funds to pay future IHT bills.
For individuals with estates which exceed the minimum IHT threshold of £285,000, the plan can be used to cover IHT costs, enabling the estate to pass intact to their heirs without the family or other beneficiaries facing substantial death duties.
Currently available to consumers with reviewable premiums, Zurich is now launching a Guaranteed version of the Adaptable Life Plan. Available from the 16th October, the introduction of the Guaranteed plan will provide consumers with greater flexibility regarding their choice of premiums when considering life cover.
The new Guaranteed plan is aimed at individuals seeking regular fixed premiums whilst the existing Reviewable plan is designed for those seeking less expensive premiums, which may change over the lifetime of the plan.
Commenting on the introduction of the new guaranteed rates, Peter Hamilton, Zurich's Protection Management Director comments: "The addition of the guaranteed plan alongside our existing reviewable plan will provide customers with greater choice based on their individual needs".
Key features
· Available as Single Life or Joint cover
· Minimum contributions - £16 per month
· Minimum age - 16yrs
· Maximum age - 69 (joint life cover), 83 (single life)
· Monthly and annual payments available
· Waiver of payment facility
· Special event benefit, including the opportunity to increase the sum assured without further evidence of health where the customers liability to Inheritance Tax has increased
· Terminal illness benefit
Zurich's latest offering is designed to demonstrate Zurich's commitment to offering intermediaries and their customers solutions that respond to the changing world we live in.
Concludes Hamilton, "Inheritance Tax is now higher in the public consciousness than ever before. There are various ways to mitigate the potential tax liability and we would strongly urge customers to consult an advisor, to plan ahead and to make the most of the tax planning opportunities available. We are confident that for many people, our new plan can form part of the solution.
For more information, please contact Sara Lister, Senior Media Relations Consultant on 01793 503810 or 07875 885161
Notes to Editors
1 Source: Department for Communities and Local Government, House Price Index August 2006 (www.communities.gov.uk)
2. Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets.
Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 55,000 people serving customers in more than 120 countries.
