Estate planning
Flexible Life Plan
Whole of life cover on a reviewable basis, with a lower initial premium than the guaranteed plan and a formal review of premium and cover at set intervals.
Glendalough, Co. Wicklow · Superbass, CC BY-SA 4.0
Who it is for
Clients prioritising a lower entry premium
What it does
- Lower initial premium than guaranteed cover
- Reviews at year 10, then every five years
- Cover or premium can be adjusted at review
- Convertible to guaranteed terms at the first review
The product in full
The Flexible Life Plan is whole of life cover priced on a reviewable basis. The initial premium is materially lower than the guaranteed plan because the insurer is not carrying the risk that the cost of cover rises over the decades; instead, that risk is examined at formal reviews — the first at year ten, then every five years.
At a review the plan is tested to see whether the premium being paid still supports the cover. If it does not, one of two things has to change: the premium rises, or the sum assured falls. Neither is a penalty and neither is discretionary — it is the arithmetic of the basis the client chose, and the honest way to present the product is to say at the outset that a review can go against them.
The plan is convertible to guaranteed terms at the first review, which is worth flagging to clients at the point of sale rather than in year ten. A client who takes reviewable cover to get started and converts at the first review has used the product as designed; one who assumed the premium was fixed has been mis-sold, whatever the paperwork said.
Literature
Product literature is issued to appointed intermediaries. Ask your underwriter, or request it through the enquiry form.
- Key features documentOn request
- Review basis explainedOn request
How it works
What happens, in order
From the first enquiry to the point the cover, the contract or the facility is in place.
Cover is set up on a reviewable basis
Minimum sum assured £50,000, with an initial premium below the guaranteed equivalent.
Cover runs untouched to year ten
No review in the first decade.
The first review, at year ten
The plan is tested. The premium may need to rise, or the sum assured to fall — and the plan can be converted to guaranteed terms here.
Reviews every five years thereafter
On the same basis, for the life of the plan.
The numbers
A worked example
Illustrative arithmetic, so the shape of the product is visible rather than described. Nothing here is a quotation or a projection.
The same £250,000 of cover, two bases
A life aged 55, on illustrative terms, showing what the reviewable basis saves at outset and what it may cost at the first review.
- Sum assured
- £250,000
- Guaranteed basis, monthly premiumAnd it never changes
- £310
- Reviewable basis, monthly premium at outset
- £196
- Saved in the first ten years
- £13,680
- Illustrative premium after the first reviewOr the sum assured falls instead
- £268
- Convertible to guaranteed terms
- At the first review
- Reviews thereafter
- Every 5 years
Illustrative and not a quotation. The reviewed premium depends on the plan’s position at the review and on the cost of cover at the time — it is not known at outset, and a client who needs it to be known should be looking at the guaranteed plan.
Premium over time, reviewable against guaranteed
The illustrative £250,000 of cover above, over twenty-five years.
View these figures as a table
| Guaranteed premium | Reviewable premium, illustrative path | |
|---|---|---|
| Year 1 | £310 | £196 |
| Year 10 | £310 | £196 |
| Year 15 | £310 | £268 |
| Year 20 | £310 | £268 |
| Year 25 | £310 | £340 |
Suitability
Where the Flexible Life Plan fits
The cases it answers, the cases it does not, and what an underwriter needs before quoting.
It is the right answer when
- A client who needs cover now and cannot fund the guaranteed premium.
- Someone who intends to convert to guaranteed terms at the first review.
- Cover requirements from £50,000.
Look at something else when
- A client who needs to know the cost for life — that is the Whole of Life Plan.
- A client on a fixed income for whom a premium increase at year ten would be unaffordable.
What we need to quote
- 1.The lives assured, dates of birth and completed applications.
- 2.Medical underwriting.
- 3.Acknowledgement that the basis is reviewable and that a review can increase the premium or reduce the cover.
Questions
What brokers ask us about this product
What actually happens at a review?
The plan is tested to see whether the current premium still supports the cover. If it does not, the premium rises or the sum assured falls. The client chooses which, within the terms of the plan.
Can the plan be converted to guaranteed terms?
Yes, at the first review. It is worth telling the client this when the plan is sold, not when the review letter arrives.
Is the reviewable basis cheaper overall?
Not necessarily. It is cheaper for the first ten years by construction. Over a full lifetime it may cost more, and the chart above is drawn to make that possibility visible rather than to hide it.
Request information
Ask us about the Flexible Life Plan
The form reaches an underwriter in Dublin. If you are an intermediary, say so and we will route it to the broker desk.