Norwich Union launches Guaranteed Whole of Life product

Article date: 10 April 2006

  • New protection product offers a guaranteed level of deathbenefit
  • No reliance on investment performance

Norwich Union is today launching a Guaranteed Whole of Lifeproduct, offering a guaranteed cash lump-sum upon death with nodependency on investment performance.

The Guaranteed Whole of Life product can be used for inheritancetax planning and family protection (as well as business planning)to provide:

  • Cover against inheritance tax liability
  • Financial support for a spouse, partner or dependants
  • Insurance for a key man within a business1

The policy can be written under trust, ensuring it does not formpart of an individual’s estate for inheritance taxpurposes.

Norwich Union is the only provider to offer three payment optionsfor such a product:

  1. A single payment option can be used to reduce the value on anestate, thereby reducing inheritance tax liability 
  2. Annual or monthly payments can be made by customers on abudget wishing to leave a set amount to their dependants
  3. "Limited premiums" (where higher monthly payments can be madeover a shorter period of time) can also be taken, helping to planfor any future drop in income ie retirement

Guaranteed Whole of Life also offers the option to increase thelife insurance each year to prevent erosion byinflation2.

Louise Colley, head of protection at Norwich Union, said: “Wehave carried out extensive research with both financial advisersand customers and created a flexible product to meet people’sneeds.

“Guaranteed Whole of Life can be used in many different ways,such as IHT and business planning in addition to offeringprotection for dependants. A factsheet is available for customers,highlighting the benefits of writing this kind of policy undertrust.

“The flexible payment options available also allow thisproduct to be tailored to meet the needs of customers and theguaranteed, pre-arranged lump sum payout will give advisers andclients a new level of confidence in planning for thefuture.”

Example premiums include:

(The actual cost depends on the level of cover chosen and thecustomer’s personal circumstances)

Premium p.m.

Single male

50 year old, ns, £100,000 sum assured


Joint life

60 year old couple, ns, £50,000 sum assured


Single male

55 year old, smoker, £50,000 sum assured


Joint life

55 year old couple, smokers, £50,000 sum assured



1. Key man insurance can be essential for thosewhose business relies on a particular individual. The policy paysout when the insured dies; however the business owns the policy andpays the premium. If the insured dies, the business is thebeneficiary and will receive the policy payout. This payout canthen be used to help ensure the livelihood of the company, bypaying off company debt for example.

2. Option to increase premiums to accountfor inflation is only available on monthly or annual premiums, andnot on those who pay a one-off payment.

Press office contacts:
Rob Pell 01904 452659Out of hours 07800 699563
Cheryl Cox 01904 452791 Out of hours 07800 695275
Louise Soulsby 01904 452617 Out of hours 07800 699 526

Notes to editors:
Guaranteed Whole of Life is available through all Norwich Uniondistribution channels.

Norwich Union is the UK’s biggest insurer. It is a leadingprovider of life, pensions and investment products and one of thelargest Financial Adviser (FA) providers. FAs provide over 70% ofthe company's long-term savings business in the UK.

Norwich Union has strategic alliances with building societies andother leading UK brand names including CIS and The Royal Bank ofScotland Group. Norwich Union’s news releases and a selectionof images are available from Aviva's internet press centre

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