WOL plan includes LTC benefit

By Rachel Williams

Zurich IFA Group has announced the launch of the first flexible whole of life plan to incorporate a long term care benefit.

The product, which serves the family, business and inheritance tax markets, also includes waiver of premium in addition to the core benefits of life cover or critical illness and enables policyholders to mix and match benefits.

It also has five variations of cover. These include options to vary the sum assured over the life of the policy and to buy cover where premiums are only payable for a specified term, for example until retirement when income is likely to fall.

Commenting on the launch Kevin Pearce, protection marketing director at ZIFA, said: "Effectively our whole of life product enables IFAs to offer a selection of plans as one comprehensive policy, simplifying the whole process of protecting business and family interests.

It is hoped that the care support option will be an affordable solution to long term care needs and both easy for the client to understand and for IFAs to sell. Pearce said: "With all the publicity and public awareness around long term care we felt the time was right for an affordable solution. The market for traditional long term care products has remained flat with cost being the major influence."

He added: "Policyholders simply need to pay a small additional premium and the sum assured will become available on failure of three ADLs. 10% of the sum assured will be paid each year on a monthly basis for 10 years, if the client dies within 10 years the balance will be paid into their estate."

While the whole of life concept has a natural fit with the family market, Pearce said the product has a particular relevance to the business market, especially for partners and shareholders in small businesses.

He said: "An owner of a small business may plan to retire at 65 but for many this is unlikely and when they do, they may not want to sell their share in the business. such a plan would cover the inheritance tax on their share."

Commissions vary between 130% and 160% and ZIFA is supporting IFAs in the sale of whole of life with a range of supportive literature and sales aids.