We all get used to a certain standard of living and going backwards isn't very appealing, in fact to some it's horrifying. That's why having some cover in place even for your more affluent clients makes sense.
If you have clients who’ve built up significant assets, they might think they can cover the financial impact of death, serious illness or injury.
But a protection plan, if set up correctly using a suitable trust, can help not only with inheritance tax planning but also underpin a client’s wealth at a time of need. Who wants to liquidate their assets when they don’t have to or when the time may not be right?
Even a little bit of the right cover can help safeguard financial ambitions and plans for future generations. With our Personal Menu Plan, you can mix and match a range of covers with different terms and sums assured. And by placing the plan in trust, it can avoid delays with claims being paid plus your clients will know that all the plan proceeds will go straight to who they intended.
Royal London - we’ve got it covered.
You’re likely to have clients who don’t believe they need protection - this may be for a variety of reasons. But protection can help with inheritance planning as well as help underpin their wealth by providing cover at a potential time of need.
Using a menu approach to protection, you can add value to your wealthier clients…
As an example, a couple has built up an estate worth £950,000 and both are looking to retire in the next few years. A lot of these assets are tied up in the home and an investment portfolio. They've one grown up son and one grandchild. Their mortgage is fully paid although they've recently committed to use some of their excess income to pay for their grandchild to attend private nursery and then a private school.
In this example the couple may want to take a small amount of Life Cover on an income basis to cover the time that their grandchild will be in education should one of them die during that time. £82.76 a month* could provide them with a possible payout of £1,500 a month (£18,000 a year and up to £252,000 over 14 years) worth of Life Cover.
In the event of a successful claim, this income could pay for the education costs, but it would also remove the need for them to liquidate any of their assets or alter any investment strategies earlier than planned. And by writing this plan in trust the trustees can manage these funds for the grandchild, ensuring that any education fees are paid throughout the term of the plan.
These are obviously just suggestions - you can create your own package from any of our covers, tailoring them to suit your client’s needs and budget. Get a quote now.
This makes the process of putting plans in trust quicker, more secure and ensures that the trust is completed correctly.
We’ve a wide range of bare and discretionary trusts available to meet your clients’ needs, you can even go back retrospectively and place a plan in trust at a later date.
* This example is for illustration purposes and does not represent actual customers. Quotes are based on guaranteed rates and on clients both aged 57 & 56 next birthday and are non-smokers. Plan term is 14 years. Premiums are correct as at 19 December 2017. For full details of risk factors, exclusions, limitations and terms and conditions, please see our plan details.