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Norwich Union looks to a sure future

Norwich Union

Future Assured

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

lump sum

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

Charges: Implicit

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

Broker Panel:-

Brian Pack – Principal, Brian Pack Financial Services

Michael Both – Proprietor, Michael Philips

Gillian Colsell – Financial adviser, Positive Solutions

Stephen Spencer – Director, Phoenix Financial Services

Broker Ratings:-

Benefits: 7.5

Flexibility: 7.5

Company’s reputation: 6.8

Premium rates: 4.9

Commission: 5.1

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

life increases."

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.


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