Skandia enhances its protection solutions for IHT planning
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16/01/2014

In a move to enhance its estate planning offering Skandia, part of Old Mutual Wealth, today announces that it has added joint life last death rates to its market-leading Rolling Term life cover.

The addition of joint life last death rates, where the lump sum is paid upon the death of the second policy holder, means that the Rolling Term plan can be used more widely as an estate planning tool for couples who anticipate an inheritance tax (IHT) bill on their estate.

Skandia Rolling Term differs from other renewable plans in that there is no maximum expiry age for the cover. It allows customers to continue the cover every ten years with no further medical evidence and the premiums increase at each renewal based on their ages.

The plan provides a flexible alternative to the traditional guaranteed premium Whole of Life cover, as during the early years the costs will often be significantly lower. It can also be used as a replacement to unit-linked Whole of Life plans, many of which have been withdrawn from the market since the introduction of the RDR.

The graph and table below illustrate the early cost saving that a Rolling Term product can offer. In this example, premiums for Rolling Term are considerably cheaper in the early years, with the total premiums paid only exceeding a similar Whole of Life plan at around the life expectancy age.

Quotes are now available from Skandia and the major external portals – Avelo (Iress), Assureweb (iPipeline) and Webline.

Ian Jefferies, head of protection at Skandia comments: Ian Jefferies

“With the nil rate band now frozen for several years, estate planning is becoming an issue for many more customers. Since its launch in 2001 our Rolling Term product has been very popular as a flexible and often lower cost alternative to the traditional Whole of Life product. The introduction of joint life last death rates further enhances the suitability of the plan to a wider range of customers with sizeable estates.”  

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.