By Robyn Hall. . GE Life is launching what it claims is the first-ever combined annuity and long t...
By Robyn Hall.
.
GE Life is launching what it claims is the first-ever combined annuity and long term care product.
AnnuityCare offers a range of annuities, including special annuities for lifestyle-related risks, equity release plans and a range of guaranteed bonds.
The product has been designed to protect against the needs of possible long term care costs, paying up to double levels of annuity in the event of serious disability and to contribute to care costs.
GE Life, which opened for business in October, was formed following the acquisition of the Stalwart Group by GE Capital and the operational merger between Stalwart and GE Financial Assurance (UK) in January this year.
David Evans, managing director at GE Life, said: "GE Life is committed to innovative products that can be sold to consumers through the IFA market. For a long time long term care has been seen as a specialist area, but the creation of AnnuityCare will open up the sector to a much wider audience.
Some estimates show that around two out of three people do not use their open market option when buying an annuity.
Evans added that AnnuityCare would help address this, making annuity purchase a central part of the retirement planning process.
The product is made up of two policies, a pension annuity and a long term care insurance policy. The long term care premium is calculated as a percentage of the annuity payment and will increase at the same rate as the annuity payments.
Key features of GE Life's combined annuity and long term care product include a minimum age of 50, maximum age of 75 and minimum purchase fund of £25,000.
Annuity payments can be made monthly, quarterly, half yearly or annually. There is a dependants' benefit option and no medical examination on joining.
Although the annuity is taxed as income, any additional amount payable under the long term care insurance is tax-free.
The launch is the latest product in a market that has yet to take off in the UK and which is seen by many as significantly behind the US market.
GE Insurance Holdings, of which both the Stalwart Group and GE Financial Assurance are subsidiaries, is itself a subsidiary of GE Capital. GE Capital, with assets of more than $300bn, is a global financial services company with 28 specialised businesses.
GE Capital is a wholly-owned subsidiary of US-based General Electric Company, a diversified manufacturing, technology and services company with operations worldwide. It is also the second largest company in the world.
Clive Cowdery, chief executive of GE Insurance Holdings, said: "This launch is part of our strategy to focus on demographically-driven markets fuelled by the changing role of the state. GE Life has a clear goal to be the first choice provider of financial services and products to the over-50s.
