Norwich Union is rolling out a bond product aimed at funding long term care costs. The Long Term Per...
Norwich Union is rolling out a bond product aimed at funding long term care costs.
The Long Term Personal Care Bond combines the existing Norwich Union Flexibond and the Future Assured long term care policies. It allows clients to invest in the NU Flexibond and take regular withdrawals to meet the premiums on the Future Assured plan.
Hywel Jones, long term care marketing manager at Norwich Union, said: "We did some customer research and we found that there are segments of the market that would like to make long term care provision but would like to get money back if they do not make a claim."
While the policy is tied up in an investment bond the contract is designed as a long term care funding mechanism rather than as an investment vehicle, said Jones. But as the policy returns the investment on death it can protect assets and leave an inheritance, making it an effective form of inheritance tax planning. NU is using this application of the product to target investment IFAs as well as LTC specialists.
Jones said: "IFAs spend time building up their clients' assets. However, long term care costs can wipe this out putting their hard work to waste."
