Guaranteed Death Benefits

Every now and again a product becomes available which seems to good to be true. Many investment houses and insurance companies offer a guaranteed return of the original investment on death less any withdrawals taken. Legal and General now offer the same guarantee even if a withdrawal of up to 4% is taken. For example Client A invests £10,000 taking a 4% withdrawal (£400 pa). After ten years he has received £4,000 in income and due to poor returns the policy is now worth just £7,000. If the clients were to die at this stage Legal and General would pay out £10,000.

There are restrictions on the choice of fund and withdrawals over 4% are excluded however this is still a valuable tool for those clients wanting to take an income but preserve capital in the event of death.

Please contact us to discuss this matter in more detail.