Act now. The law is changing. Now is a wise time to buy
It’s a win/win situation
Protect your future this autumn and you could save up to 25% on your
insurance (as well as getting up to 13% more retirement income)
Until now, women have paid less than men for both life and critical illness insurance.
Men, on the other hand, have paid less for income protection and enjoyed higher
annuity rates. On 21 December, this is all due to change. A new EU gender directive
is coming into force, which the HM Treasury predicts will increase monthly insurance
premiums for women by up to 15% and reduce annuity payouts for men by as much
as 13%. That’s in addition to income protection premiums for men rising by up to
25% .1 So by buying your cover or annuity now, you could stand to gain.
1. UK response to the 1 March European Court of Justice ruling, December 2011.
The new law may be complicated but the message is simple:
now is a good time to buy
With life insurance, critical illness and income protection premiums likely to rise
by up to 25%, you could save yourself hundreds of pounds over time by buying
through AWD Chase de Vere this autumn. Whether it’s a new policy or a review
of an existing one, we’re here to help. And now’s the time to take action.
The benefits of protection and annuities
What would happen if you or your partner suddenly lost your income? Would it
mean having to move house or change your children’s university plans? Could you
still afford to retire? It’s worth thinking about the answers to questions like these
so you can protect your family’s future. There are several products we advise on
that can help.
Term Life Insurance
This is a type of insurance that pays out money (often tax-free) in the unfortunate
circumstances of your death.
Critical Illness
Critical Illness Insurance provides a tax-free payout if you are diagnosed
with a specified critical illness such as cancer, heart disease or many other
serious conditions.
Income Protection
If you are unable to work through sickness or injury, this cover protects your
ability to cope with everyday expenses by paying out a monthly income.
Annuities
An annuity converts your pension pot into a monthly income in retirement. While
many buy this from their pension company, AWD Chase de Vere have access to
the Open Market Option. This could provide you with up to an additional 35% 2
more income per month.
This autumn is the time to apply
It can take a few months to set up a new policy with an insurance or annuity
provider, especially if the provider needs to obtain additional information from
a doctor. Then your policies need to be approved. That’s why it’s important to
speak to us soon to make sure you beat the deadline on 21st December.
2.35% is achieved by using the Open Market Option and comparing the lowest standard annuity rate with the best
enhanced rate for a person with a medical condition. The quote is based on a 65 year old male, residing in a CR postcode,
with a pension fund of £100,000. Pension payments are monthly in advance, no escalation, no guarantee period.
See how the forthcoming changes
are likely to affect you
The EU gender directive is likely to result in changes to
different products for men and women. The tables below
show the potential financial savings you could make by buying
your policies this autumn. This could either mean hundreds
of pounds over time on term, critical illness and income
protection – or you receiving more income from an annuity.
If you’re male
Product
Current monthly premiums,
based on £2,360 per month
Likely price rise
Monthly premiums
after 21 December
Your potential savings
over 25 years
Income Protection1
£33.76
25%
£42.20
£2,532.00
Product
Current monthly income,
based on £150,000 pension
Likely decrease in value
Monthly income
after 21 December
Difference in income
over 25 years
Annuity2
£586.00
-13%
£509.82
-£22,854.00
If you’re female
Product
Current monthly premiums,
£250,000 sum assured
Likely price rise
Monthly premiums
after 21 December
Savings over 25 years
Term Life Assurance3
£18.73
15%
£21.54
£842.85
Product
Current monthly premiums,
£150,000 sum assured
Likely price rise
Monthly premiums
after 21 December
Savings over 25 years
Critical Illness4
£41.64
15%
£47.89
£1,873.80
To arrange a quote, speak to your AWD Chase de Vere adviser, call 0845 140 4014 or visit www.awdchasedevere.co.uk
Premium changes will depend on your individual circumstances and could be higher or lower than quoted figures. 1. Best quote obtained on 19.06.12. Male aged 40 years, cover to age 65 with
a 13 week deferred period, paying a level monthly benefit of 60% of net salary (based on gross annual income of £70,000). 2. Best quote obtained on 19.06.12. Male aged 65 years, non-smoker,
living in a CR postcode with a pension fund of £150,000. Best standard level annuity available using Open Market Option, with no guarantee. 3. Best quote obtained 19.06.12. Female aged
40 years, non-smoker, £250,000 of level life assurance over 25 year term, with guaranteed premiums. 4. Best quote obtained 19.06.12. Female aged 40 years, non-smoker, £150,000 of
decreasing critical illness over 25 year term, with guaranteed premiums and terminal illness cover.
How your AWD Chase de Vere adviser
can help you beat the deadline
As one of the UK’s leading firms of independent financial
advisers we deal with the UK’s top insurance and annuity
providers. While many banks and building societies can
only advise on a limited group of companies, we have
access to the whole of the market. We can help you by:
Explaining everything you need to know about income
• protection,
annuities, term life insurance and critical
illness cover.
how suitable each type of product is for
•Discussing
your individual needs, and proposing appropriate levels
of cover based on your lifestyle.
quotations from leading insurers to ensure you
•Gathering
get the right cover at a competitive price.
the Open Market Option for annuities, potentially
•Accessing
getting you an additional 35% more income each month.
you get your policies in place before the EU gender
•Helping
directive deadline.
To find out more about the win/win situation of both
protecting your family and saving money, speak to your
AWD Chase de Vere adviser or call our client services
team on 0845 140 4014.
AWD Chase de Vere Limited (registered in England Number 2090838)
is a wholly owned subsidiary of AWD Group plc and is authorised and
regulated by the Financial Services Authority. AWD Group plc is a
member of AWD Holding AG, one of Europe’s largest financial advice
groups. Registered office: 60 New Broad Street, London, EC2M 1JJ.