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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 It can also be used as a replacement to unit-linked Whole of Life plans, many of which have been withdrawn from the market since the introduction of the RDR.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:

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

On a ‘go forward basis’, Quilter oversees £ 111.6 billion in customer investments (as at 31 March 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset and single strategy 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 Old Mutual Wealth’s multi-asset investment solutions business.

The Quilter businesses will be re-branded to Quilter over a period of approximately two years following separation from Old Mutual:

  • Intrinsic to Quilter Financial Planning
  • Private Client Advisers to Quilter Private Client Advisers
  • The Multi-Asset business to Quilter Investors
  • The UK Platform to Quilter Wealth Solutions
  • The International business to become Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name.

On 19 December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Quilter is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking. For the year ended 31 December 2017, Old Mutual reported an adjusted operating profit before tax of £2.0 billion. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com.

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