Life insurance Updated:
Norwich Union has launched Guaranteed Whole of Life, a product which offers a guaranteed cash lump sum upon death with no reliance on investment performance, writes Jane Baker. The policy can be used for inheritance tax (IHT) planning, family protection and key man insurance. Writing the policy under trust ensures it does not form part of an individual's estate for IHT purposes and therefore can protect against an IHT liability. It can also be used to provide financial support for a spouse, partner or dependents.
A single payment option can reduce the value of an estate, thereby reducing IHT liability. Annual or monthly payments can be made by customers on a budget wishing to leave a specific amount to their dependents. 'Limited premiums' - where higher monthly payments are made over a shorter period - can also be taken, helping to plan for any future reduction in income such as during retirement. Guaranteed Whole of Life offers an option to increase the life insurance each year to prevent erosion by inflation.
Louise Colley, Head of Protection at Norwich Union, said: "Guaranteed Whole of Life can be used in many different ways, such as IHT and business planning, in addition to offering protection for dependents. A factsheet is available for customers, highlighting the benefits of writing this kind of policy under trust. The guaranteed, pre-arranged lump sum payout will give advisers and clients a new level of confidence in planning for the future."
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