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R&SA cuts premiums to boost term cover sales

Royal & Sun Alliance is slashing rates on its level term insurance product Lifewise by up to 70 per cent.

The premium cuts are part of the life office&#39s bid to strengthen its position in the individual and corporate protection market through IFAs.

R&SA is hoping the redu ced rates will win it a market leading position. It believes the business protection market has strong growth potential for IFAs.

It says UK firms are continuing to take risks by not adequately covering key employees.

Under the new rates, on a family protection plan for a non-smoking 45-year-old male with a £250,000 sum assured over 15 years, monthly premiums fell by 37 per cent to £67.86 from £107.50.

Under keyperson cover, based on a £500,000 sum ass ured over five years, monthly premiums for a non-smoking 35-year-old male will be slashed by 70 per cent to £68.66 from £20.81.

IFA personal market lea der Mark Edwards says: “The cost of cover is continuing to fall. This is good news for consumers and puts affordable life cover within easier reach of people looking to protect the financial future of their family and their business.”


Julian Gibbs

Obtaining an income of 10 per cent a year or more with reasonable safety is almost impossible in the current interest rate environment, especially as it looks likely that the next move in rates will be down.Nationwide, for example, has already reduced its rate slightly in anticipation of this. So it is even more creditable […]

FSA urged to step in on pension credits

Scottish Equitable is urging the FSA to shoulder responsibility if the Government&#39s proposed pension credits leave some stakeholder savers out of pocket in retirement. The company fears that, unless the FSA issues a clear statement giving life offices the green light to assume that the top-up payments will be in force by 2003, they may […]

Insurance bonds better deal than National Savings

Guaranteed bonds issued by insurance companies currently offer better rates than National Savings “granny” bonds, according to a survey by Ilford based IFA Baronworth. The survey found that for pensioners with £10,000 to save, National Savings one-year bond returned 5.75 per cent while a one-year guaranteed income bond by insurer AIG returned 6.26 per cent. […]

Regulation may fail to put house

Concrete proposals for mortgage regulation have been a long time coming so the recent announcements from the Treasury and FSA should be welcomed by the new breed of consumer-friendly mortgage lenders. The Government&#39s commitment to protect consumers from abuse in the mortgage market seems genuine but there is no reason for complacency. Now is a […]

Flexible reversionary trusts and estate planning

The suitability of different estate planning solutions will depend on the individual’s own circumstances, needs and objectives. When considering the different solutions available there is a trade-off between inheritance tax (IHT) efficiency and access. Overall a flexible reversionary trust provides a greater level of flexibility than a discounted gift trust and can offer individuals a […]


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