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Term believer

Andy Milburn is quite right to comment that clients should be careful not to be placed in a worse position when replacing existing term cover with an alternative tax-relieved solution.

This should never be the case with the Lutine replacement cover for term insurance.

First, we have a Lutine guide for our “partner IFAs” and their clients. These outline the basic parameters of the product. No smoke or mirrors.

Second, we have made available an online system to carry out suitability tests for our partner IFAs’ existing term case. This system ensures that we can match the gross premium of the existing insurer and that the existing policy falls within the other parameters that we have for this product.

Third, with tax relief, this gross premium is reduced by the client’s highest rate of tax. This means a saving in some cases of thousands of pounds over the policy term.

This is certainly not a worst position for existing clients.

If or when pension tax relief is withdrawn, the client will still only pay the same gross premium that he paid before. Again, this is not a worse position.

Lutine has designed this approach to be an easy and convenient way of replacing existing term cover into a pension tax relief environment without the need for extensive form-filling or medical examinations. It will not suit every policyholder but substantial savings can be had for the ones who do suit it.

We have a number of other exciting products in the pipeline for our partner IFAs. As they say, watch this space.

Shaun Murphy
Sales & marketing manager
Lutine Assurance Services
London

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