Type: Future needs long term care plan
Minimum premium: £20 a month, £200 a year, £3,000 lump sum
Minimum-maximum benefit: £200 a month, £2,400 a year – £3,333 a
month, £40,000 a year
Minimum-maximum ages: 17-80 regular premiums, no maximum for
Cover provided: Blue – on failure of one ADL an independent living
benefit of three times the monthly care benefit is payable, on failure of
three ADLs, monthly care benefit is payable. Silver – on failure of one
ADL an independent living benefit of three times the monthly care
benefit is payable, on failure of two ADLs 50% of monthly care benefit
is payable, on failure of three ADLs, monthly care benefit is payable.
Gold – on failure of one ADL an independent living benefit of three
times the monthly care benefit is payable, on failure of two or three
ADLs, monthly care benefit is payable
Deferred periods: 90 days for failure of two or three ADLs, nil for
failure of one ADL
Allocation rates: 100%
Commission: Regular premiums – initial 30%, renewal 2.5% or level
3%, 4%, 5%, 6%, 7% or 8%. Single premiums initial 6%
Tel: 0845 9444800
Brian Pack – Principal, Brian Pack Financial Services
Michael Both – Proprietor, Michael Philips
Gillian Colsell – Financial adviser, Positive Solutions
Stephen Spencer – Director, Phoenix Financial Services
Companys reputation: 6.8
Premium rates: 4.9
Product literature: 6.5
Norwich Union has introduced Future Assured, a future needs long
term care plan offering three levels of cover.
Looking at how the product fits into the market, Colsell says:
"The product is very flexible, allowing single and regular
premiums, increases, reductions and changes from one type of core
cover to another."
Pack also feels the link with Age Concern will help, saying that it will
assist with a successful launch in a crowded marketplace.
Spencer adds: "The product fits into a growing
marketplace. Demographics indicate that we are all living longer and
with that the likelihood of needing some healthcare provision in later
Both feels that long term care products are something of an
unexplored continent. He also thinks the three versions of the policy
will give it an edge over the competition.
Moving on to the type of client the product is suitable for, Pack
pinpoints: "Middle aged or elderly people who are worried
about future costs of being a burden on the family."
Spencer mentions anyone who is concerned about making provision
for their own long term care, or that of their partner. He also mentions
people with significant assets who do not wish to see these used to
fund long term care, or who wish to preserve their estates for the next
Both says: "The very broad range of benefits means that it
could be suitable for anyone looking for a bit of a top up to their plans,
all the way up to a very comprehensive, gold plated zimmer frame
Colsell feels this product will appeal to people who can live
comfortably in retirement and can afford the premiums without
affecting their quality of living.
Turning to the marketing opportunities that the product will provide,
Spencer says: "As the product is versatile and can be set
up either on a single premium or regular premium basis, then there
may be extra opportunities to present the product to people who
could not afford single premium policies or do not wish to tie up
capital on a product that will give no return and may never be
Both adds that the heavily branded link with Age Concern will help to
reassure a sceptical public that it is a product worthy of serious
consideration. Colsell feels the plan will provide opportunities for
detailed and careful financial planning.