Aegon launches its first signature-free trust

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Aegon will save advisers and their clients time when setting up Relevant Life policies following the introduction of its first signature-free trust.

Available this week, the new signature-free trust will help advisers to get their clients’ cover in place quicker, while reducing the risk of paperwork being completed incorrectly.

As Relevant Life policies can’t start until a trust is in place, this improvement will help speed up the process, and potentially allow clients to go on risk immediately.

Simon Jacobs, Head of Claims and Underwriting at Aegon, commented:

“Not only have we streamlined our online application process for Relevant Life, making it even easier for advisers to get cover in place for their clients, we’re also the only provider in the market that allows advisers to apply for executive income protection at the same time, in a single online application – so there’s only one application to be underwritten.

“This could help many advisers design unique employee benefits packages for small corporate clients who don’t qualify for group risk schemes – helping them to attract and retain employees. They would also receive our multi-policy discount.

“Our focus is on making protection as easy as possible to process for both advisers and their clients. Efficiency is fundamental to driving adviser businesses forward. By providing a “one-stop shop” for both Relevant Life and executive income protection policies, we hope we’re helping advisers find the best solution for their clients’ protection needs.”

Aegon’s new signature-free trust has the same trust terms and powers as its paper trust:

  • Any immediate cover or accidental death benefit will be held in trust from the start.
  • Limited companies don’t have to be a corporate trustee – in some circumstances it will be beneficial not to be, for example where they’re a company with a sole shareholder director.
  • Unlike group life schemes, Aegon’s Relevant Life policy is portable, so that it can continue if the insured person moves jobs. The insured person (employee) can:
    • let the policy lapse.
    • maintain the policy themselves within the existing trust, but their terminal illness cover would stop.
    • ask their new employer to start paying the premiums.
    • ask the trustees to transfer ownership of the policy to the employee, so that the employee can pay the premiums. However, this would mean some of the associated tax advantages may no longer apply, and their terminal illness cover would stop.

 

Further information

Stephanie Melrose

PR Manager

Aegon UK

stephanie.melrose@aegon.co.uk

Tel: 0131 549 6743

Mob: 07740897621

 

Notes to Editors

  • In the UK, Aegon offers retirement, workplace savings and protection solutions to over three million customers. Aegon employs around 2000 people in the UK and together with a further 800 people employed by Atos, we serve the needs of our customers. More information: aegon.co.uk
  • As an international life insurance, pensions and asset management group based in The Hague, Aegon has businesses in over twenty five markets in the Americas, Europe and Asia. Aegon companies employ over 28,000 people and have millions of customers across the globe. Further information: aegon.com

*Figures correct as of August 2019