Zurich Life is going for the flexible approach with the introduction of its whole of life plan.
Depending on what the client choses as the base plan, additional benefits can include critical illness cover and long-term care provision, which pays out if a client fails three out six activities of daily living and waiver of premium benefit. The plan can be taken out on a single life, joint life first death or joint life second death basis.
Clients can also increase the level of cover or take out a new policy without further medical underwriting for special events, such as to deal with inheritance tax, business protection, and family protection. There are also five levels of cover available. These are standard cover, which has a fixed premium rate throughout the term, standard cover premium payment term, which offers lifetime protection with premiums payable for a specified amount of time, maximum cover, which includes the most that can be offered and select cover term, which is maximum cover or select cover for more than ten years, and select cover, which for a 20 year term plan could have lower premiums for the first 15 years and then increased premiums in the last five years.
Many IFAs have not been involved in the whole of life market in the past because these plans tend to be a more costly way of providing life cover than term assurance. But with the provision of options like critical illness and long term care cover, this should make the Zurich Life product more attractive than others on the market at the moment. The five levels of cover make the product more innovative than many other whole of life products, which usually provide fewer levels of cover.