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Key Partnerships: Inheritance Protection Feature

Retirement news for Financial Advisers and Paraplanners

31 Aug 2018

Key Partnerships: Inheritance Protection Feature

Did you know that 39% of clients are put off equity release due to inheritance concerns?* However, plans with a 'Guaranteed Inheritance Feature' will allow them to protect a percentage of the future value of their home to leave as an inheritance, as long as they don't take the full release amount.

For Example:

Mr and Mrs Smith (aged 70 and 73) 

Property Value:

£300,000

Maximum Release Amount:

£127,500 (LTV 42.5%)

Initial Release Taken:

£63,750 (50% of maximum release amount)

Guaranteed Inheritance Feature:

50% protected

Age at Time of House Sale:

87

Property sale price when plan is repaid:

£450,000 

Inheritance Protected:

£225,000

 

The amount that client's are able to protect is based on how much of the release amount they initially take. If clients subsequently choose to take further funds from a drawdown facility, then the protected amount will reduce.

Do you have any clients in mind?

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