Zurich is launching an investment-linked life cover policy for those with investments held on its platform, in what the company said is the first in a series of new solutions it plans to launch over the next 12 to 18 months.
Zurich’s investment life cover (ILC) is launching on 6 January 2014 and has no underwriting or medical evidence requirement. According to Zurich, it is the only UK provider to offer a simple investment-linked life insurance policy on a platform.
The life cover, based over a five-year period, will protect the policyholder’s eligible platform investments so that in the event of their death Zurich said it will pay out to the beneficiaries the difference between the original investment (less any withdrawals) and the value at the point of death.
For example, if someone invests £100,000 worth of eligible assets onto the Zurich platform and the value of those assets fell to £90,000 at the time of the policyholder’s death, the beneficiaries would receive the £10,000 difference under the terms of the policy, less any withdrawals made over the period.
The charge for ILC will be waived for customers during 2014, irrespective of the amount covered – and from January 2015, a 0.1 per cent annual charge will apply to the eligible investment amount.
David White, head of retail for Zurich UK Life, said: “This latest innovation drives at the heart of our ambition to help advisers and their customers manage risk.
“Advisers have told us that ILC is exactly what they want – a product that is simple, easy to understand and easy to apply for.
“Today’s announcement is the start of a whole suite of investment-linked protection solutions which will be market-leading and demonstrate our commitment to protecting people’s futures.”
