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Cofunds eyes adding protection to its platform

Cofunds is looking at launching protection products onto the platform in a move which could see the creation of an investment-linked protection range.

The company says it is considering a number of options to add protection on the platform, which could include investment-linked protection or a wider range of protection products.

A spokeswoman says: “We are looking at a number of new services such as protection as we can see this as an extension to the traditional platform, but have no firm plans as yet.”

Asked if any product would be tied to parent company Legal and General, Cofunds says it not possible to say at this stage. 

Nucleus and Zurich have already launched investment-linked protection on their platforms. Nucleus’ term assurance policy pays out on death based on the difference between portfolio value and a client’s target value while Zurich pays out on death based on the difference between original investment amount and the current portfolio value. 

Skandia re-entered the critical illness market in August after pulling out of the sector in July 2010.

Sovereign IFA director Mark Hibbitt says: “At the pricing levels we are seeing of around 10 basis points I can see some value in an investment-linked protection product for those that want some protection for a spouse on death.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Ah I see the devious hand of L&G!

    Didn’t we have problems years ago with investment linked life cover sold by the unscrupulous to make more money? Unit Linked Whole Life wasn’t always the best choice.

    In essence there is really no justification for putting life cover on a platform and increasing cost. Yes I can guess the justification – you can manage the investments and switch the funds. Thin ice – wafer thin I’d say. I wonder what the Regulator will make of it. If they are going to walk the walk they will jump on it at an early stage – as they keep telling us that they want to stop problems before they get hold.

    As ever it seems that the venal life companies have really learned nothing over the last 20 or so years.

  2. Stephen Wynne-Jones 26th February 2014 at 8:41 am

    No Harry, no hand and certainly no deviousness! Your view on L&G is well understood, but please don’t read anything into this story.

    As protection is already on two platforms, this is one of many areas that we want to look at as part of our long-term thinking. I was simply asked the question and made clear to the journalist there are no plans, but it’s just in the mix.

    Stephen Wynne-Jones
    Head of Marketing
    Cofunds

  3. Stephen

    In which case please accept my unreserved apology. One reads articles and takes them as gospel. I should know better!

    However just because two platforms are behaving badly shouldn’t be a signal for others to consider doing the same. I just can see a robust rationale for putting life assurance on a platform. So I do hope for the sale of your reputation you don’t allow your masters to do this.

    And for the avoidance of doubt IO don’t necessarily only pick on L&G. I’m afraid I have an equally if not worse opinion of Prudential and Aviva as life offices.

  4. Apologies for typos.

    ‘I just CAN’T see a robust rationale’ &
    ‘..avoidance of doubt I don’t ‘

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