What is the Guaranteed Whole of Life plan?

The Guaranteed Whole of Life plan pays out a guaranteed cash sum when you die. The cover lasts throughout your lifetime, rather than for a fixed term.

Why would I need it?

If you think you're likely to have an inheritance tax liability, you can take out a plan to help cover it.

• Inheritance tax - not just a tax for the rich.
• Affects taxable estates valued at over £312,000 (2008/09 tax year). Please note tax laws could change in the future.
• Whopping 40% tax charge on the part of your taxable estate worth over £312,000.
• This plan could mean your dependants don't have to face a hefty tax bill.

To provide financial security for your family, with a payout that's guaranteed, whenever you should die. It offers lifelong protection, not just cover for a 'set' number of years.

For added protection, and to avoid increasing the potential tax bill, you can put your plan in trust.

Some very good reasons to put your plan in trust:

• Putting your plan in trust can separate it from the rest of your estate for tax purposes.
• It means you can leave as much as you want for your loved ones - and not to the taxman.
• Putting your plan in trust usually means the plan benefits can be paid out more quickly.
• A swift payout could mean your loved ones don't have to borrow money to pay any inheritance tax bill. This often happens where the main asset is a house.
• Norwich Union's Guaranteed Whole of Life plan gives you the option to put your plan in trust. Ask us for more details. Call free on 0800 0927751.

View our benefits at a glance

What does the plan offer and how does it work?

Guaranteed cash sum

• Paid out whenever you die

Extra cover feature

• Automatically available if we agree your medical details are acceptable.
• Allows you to increase your total cover after the plan starts. You can do this without having to answer further medical questions if your potential inheritance tax liability increases directly as a result of:
  • you receiving a gift or inheritance of cash or residential property
  • changes to inheritance tax legislation.
• Use it as many times as you like (subject to minimum and maximum levels).
• Can help you maintain the cover you need if your situation changes.

Yearly increase option

• Increase your cover by 5%.
• Premiums increase by 5% a year too.
• Only available if you choose the maximum premium term.
• Bigger cash sum paid when you die - helps protect against inflation.

Ways to pay - for cover that lasts a whole lifetime

Choose:

• one single payment
• regular premiums (monthly/annually)

For regular premium payers:

You may have a choice of paying premiums for a maximum term or for a reduced (limited) term. This depends on your age when you take out the plan. Of course, the premiums for a limited term will be higher, because they're payable over a shorter period.

Maximum premium term

If you're taking out the plan on your own:

Aged 79 or under?

• You'll stop paying premiums on the last plan anniversary before your 90th birthday.

Aged 80-89 inclusive?

• You'll need to pay premiums for 10 years.

If you're taking out a joint plan with your partner:

Joint plans are available on a first or second death basis. Your financial adviser will help you decide which is best for you.

If you take out a joint plan which pays out on the first death, the ages above will apply to the older planholder.

For joint plans which pay out on the second death, the ages above will apply to the younger planholder.

Remember: if you're paying premiums for the maximum premium term, the plan doesn't have a cash-in value at any time.

Limited premium term or single premiums

For limited premium term plans, or where you've chosen to pay a single premium, there may be a cash-in value. This is because you'll have paid in more over a shorter period. Remember that any cash-in value will be less than you've paid in. Also, we don't recommend cashing-in your plan - you should view it as a long-term commitment.

How much does it cost?

• Premiums start from as little as £5 a month

• What you pay depends on factors like:
  • the amount of life insurance you choose
  • your age and sex
  • whether you smoke
  • your occupation
  • your pastimes
  • your medical history
  • the term over which you pay your premiums
  • whether or not you choose the yearly increase option
  • our charges

• Premiums are guaranteed not to change - unless you choose the yearly increase option or take additional cover under the extra cover feature:
  • Yearly increase option: premiums will increase by 5% compound a year.
  • Extra cover feature: The premiums for the new plan providing this extra cover will be set at the time it's taken out. The original plan premiums do not change.

Benefits - at a glance

• Guaranteed cash payment when you die.
• Cover for your lifetime - not just for a fixed number of years.
• Flexible payment choices.
• 5% yearly increase option - for a larger cash sum.

Next steps

Call us today and get a quote now to see how much the Guaranteed Whole of Life plan could cost you - our advisers are there to answer all your questions.

If you're unsure about whether this plan is right for you, compare the different types of life assurance available. We can only advise on our own products. Calls may be monitored and/or recorded.

WC05001 04/2008