Nucleus is adding a protection product to its platform for the first time after teaming up with provider Integrated Protection Solutions.
Wealth Protect, which is available as a single life policy to clients aged between 18 and 75, is 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. The product is underwritten by Elips Life, a subsidiary of Swiss Re.
The sum assured and premium is automatically calculated each day based on the value of the invested assets, with the premium taken from the assets each month. IFAs agree their commission up front with customers and this is added to the monthly premium.
An initial minimum sum of £70,000 applies and the minimum term is five years. Clients have the option to limit the sum assured and can change this at any point.
The product is priced on a gender neutral basis. Presently a 34-year-old non-smoker needing around £300,000 sum assured will pay roughly £13.50 a month.
Nucleus started piloting the product with 11 member firms this week and will roll it out to all Nucleus wrap users early next year.
Nucleus chief executive David Ferguson says: “What the team is doing at IPS is brilliant and it will change for the better the way protection products are built and used in the UK.”
London & Country sales director Michael Aldridge says: “This is a nice marry up between protection and investments which might appeal to the IFA market and is attractive to customers wanting to protect their wealth.”
The graph below shows how the premiums on the IPS product change with the value of the client’s assets: