THE ADVANTAGES OF TWO PRODUCTS IN ONE

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1 Protect Rolling Term THE ADVANTAGES OF TWO PRODUCTS IN ONE FOR financial advisers ONLY

2 what is a rolling term? you could say it s two products in one; a renewable term and a whole of life policy. Rolling term is similar to a 10 year renewable term, but it has two key advantages: No maximum expiry age so your client can continue to extend the cover for as long as they need it. No nasty surprises unlike a reviewable whole life policy, we ll tell you upfront what the premiums will be at each extension and these are guaranteed not to change. GUARANTEED AND SIMPLE When you first quote rolling term we ll tell you on the illustration what the premiums will be for the first three extensions (or the first two if your client is aged 70 or over). If you want to know what the premiums will be for further extensions we can tell you these too, on request. These aren t predicted premiums, these are guaranteed premiums. We can guarantee the future premiums because unlike other providers we use the same rates throughout the life of the policy. The premiums only increase because the life assured will be 10 years older at the extension. 2

3 How does it work? At the start of the policy your client will get an illustration, which as well as the initial premium, will tell them what the premium will be in 10, 20 and (if they are under 70) 30 years time. At the end of the first 10 years, your client will be sent an extension pack with the option to extend the cover for a further 10 years. If the cover hasn t changed, the premium will match that shown on the original illustration. If the cover or benefits have changed, the new premium is based on their age, the sum assured and any options included at the time the offer is made. Premiums are guaranteed for the next 10 years. This process can be repeated every 10 years for the rest of the client s life, whatever their state of health, and all renewals are free from underwriting. USING ROLLING TERM By combining the flexibility of renewable term and the longevity of whole of life, rolling term gives you a product that has many uses such as: An alternative to guaranteed whole life policies when planning for a potential IHT liability, offering a lower premium at the beginning, but with the future increases in premium guaranteed from the outset. Please see graph below. A flexible renewable term for business protection that s not limited by age should a business owner wish to continue working well past retirement age or re-assign it as personal cover when they retire. It s one of the few plans on the market can offer critical illness cover for the whole of the client s life. Cumulative premiums paid by 50-year-old non-smoker for 500,000 of life cover Rolling Term WOL Average life expectancy from Government Actuary tables 3

4 HOW DOES IT COMPARE? Providers of reviewable policies can t tell you what the future premiums will be because they use factors that aren t known in advance or they may not know when a review will take place. The tables below compare the multiple factors used by reviewable policies with the two factors used to calculate the future rolling term premiums. It s because we use just these two factors that we can tell you from the outset how much the cover will cost in the future and guarantee those future premiums. Typical Factors used to calculate future premiums at review REVIEWABLE POLICIES* Protect Rolling Term EXTENSION Age of the life assured 3 3 Claims experience 3 Administration costs 3 Fund/Investment returns 3 The costs of tax and regulation changes 3 Reinsurance premiums 3 typical review periods REVIEWABLE POLICIES* Protect rolling term EXTENSION Every 10 years 3 After the first 10 years and every five years thereafter 3 After the first 10 years and then every year, unless the premium is increased, in which case it will be a further 10 years 3 Every year after age 75 3 *Source: providers own literature and Defaqto 4

5 PROTECT ROLLING TERM IS A UNIQUE PRODUCT IN THE PROTECTION MARKET

6 FIND out more: You can find more information on Protect rolling term in the Protect adviser guide on our website, or by copying and pasting the link below into your internet browser We regularly update our literature; you can confirm that this March 2018 version is the latest by checking the literature library on our website Please be aware that calls and electronic communications may be recorded for monitoring, regulatory and training purposes and records are available for at least five years. Old Mutual Wealth Life Assurance Limited is registered in England & Wales under number Registered Office at Old Mutual House, Portland Terrace, Southampton SO14 7EJ, United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services register number VAT number SK10580/ /March 2018