F&C is adding a life cover option to its Thames River multi-manager funds, offering protection against a capital shortfall of up to £150,000 on death.
Investors up to the age of 79 are able to buy into the protected share classes on a whole of life basis, with no medical underwriting required, and will pay an additional 0.25 per cent for the cover.
Such capital protection was already available on the F&C Lifestyle funds but will now also be available on the Thames River Distribution, Thames River Cautious Managed and Thames River Global Boutiques funds. The Thames River funds will cost 1 per cent and the Lifestyle range 0.75 per cent, both 0.25 per cent higher than their standard fund charges.
As an example, if an investor invests £1m but the investment value falls to £870,000 at their date of death, there would be a £130,000 shortfall payment to their estate.
F&C head of UK retail John Yule says: “People set up trusts to get income while they are alive, which can be accessed through buying the Thames River distribution fund, and when they die their children get access to capital. Having that life insurance protection, gives them a benefit from the extra cost.”
F&C is in talks to launch the new products on various platforms this quarter.
Nucleus recently teamed up with Integrated Protection Solutions to launch a term assurance policy designed to pay out a sum on death equivalent to the difference between the value of a client’s platform assets and their target portfolio value.