NB THIS LETTER IS FOR NEW WHOLE OF LIFE POLICIES ONLY NOT RE-BROKED CASES.

PLEASE CHECK WITH COMPLIANCE BEFORE ADVISING ON ANY POTENTIAL WHOLE OF LIFE REBROKE AS REQUIREMENTS MAY VARY DEPENDING ON INDIVIDUAL CIRCUMSTANCES, INCLUDING WHETHER OR NOT IT MAY BE POSSIBLE TO RE-BROKE .

Name

Address

Address

Address

Address

Dear Name

Following our recent discussions and completion of a Personal Financial Planning Profile on date, I am writing to detail the recommendations which I feel are appropriate to your current circumstances. You were concerned that in the event of your death your family would suffer financial hardship / you would leave an inheritance tax liability, etc, and this recommendation is aimed at meeting this objective.

My recommendation takes into account that you are single / married / separated / divorced, with no / one / two / three / four dependants. It also takes into account that you are self-employed / employed and a lower / basic / higher rate taxpayer. Based on your income and expenditure you have verbally confirmed to me that the anticipated premium (£ pm) I have already indicated to you is affordable.

In connection with your requirements I recommend that you implement a Whole of Life Plan with a sum assured of £Amount. In order to provide the minimum / standard / maximum level of cover for the premium (£Amount per month) I would suggest that the contract is arranged on a minimum / standard / maximum basis for reasons. You are able to switch between the minimum and maximum levels of cover as your life assurance/investment requirements change throughout your life. This meets your requirements for a flexible contract.

As we discussed you appreciate that under a whole of life policy the cost of premium for life assurance will be reviewed in 5 / 10 years time by the insurance company, and will inevitably mean that the premium will increase substantially at that time.

The total sum of the monthly premiums payable over the first 5 / 10 years of the policy is £XYZ (representing £AB per month x12 months x 5 / 10 years). Do note however that you are able to cancel the cover provided by the policy at any time should you choose, and future premiums will cease.

Due to the “Whole of Life” nature of this policy, it is not possible to predict what the final total of all premiums may be, over the remainder of your life / lives.

Joint Life second death policies only. In arranging this policy you wish to ensure that your beneficiaries receive the funds in order to assist with meeting the level of Inheritance Tax that may become due on the death of the surviving spouse. This arrangement is often referred to as a “joint life, second death” policy, and is intended to meet IHT due at that stage, any transfers between husband & wife that would normally occur on the first death are (currently at least), exempt from IHT.

Depending on the level of cover below the maximum that has been selected this contract will also provide you with an investment element which may, over time, produce an investment return. You are aware, however, that the value of units purchased can go down as well as up.

A Whole of Life plan also meets your requirement to provide life assurance in a cost-effective manner. Whilst it is not as cheap as Term Assurance on a monthly basis, you could have the potential to recoup some or all of the premium costs through the investment element in the event that you do not make a claim.

My recommendation is based on your requirements after having discussed the various other options available to you. These, however, were discounted as you preferred a plan that would give you a potential return on your contributions whilst providing you with a high level of cover.

In connection with the contract itself I recommend Product Provider as the selected Company as they meet your requirements to invest in a well-respected company, with good financial strength. They also have a good selection of funds and they will offer you the option to switch between the unit linked funds. Their contract also has a positive charging structure and this is reflected in the potential surrender values, which are very competitive especially in the early years.

Product Provider has achieved good fund performance over the last 12, 36 and 60 months which was another area that was important to you. You are aware, however, that past performance cannot be treated as a guide to future returns.

We have discussed the different styles of fund, unit linked and unitised with profits and based on this you have initially decided to invest in the Name of Fund. (Description of Fund) and this type of fund matches your cautious / balanced / speculative approach to investment risk.

Use of Trust. We have discussed placing the policy in trust so that in the event of a claim, the benefits should not form part of your estate, but pass directly to your chosen beneficiaries. I enclose/you have received…..Product Providers standard trust forms in this regard. Whilst I am very happy to assist you in completing these, we cannot accept legal responsibility for the trust wording, and if you are in any doubt over this aspect I would strongly recommend you have the trust arrangements checked by your solicitor.

I have also explained details of the Research report which confirms the above points and further illustrates why Product Provider has been selected.

We have discussed the Product Provider Key Features document and your personal illustration which outline the key product details and explains when the benefits are payable.

For our advice and arranging this plan, we have agreed a fee amounting to £Amount / as shown on your Key Features Document as we have already discussed. This sum will be deducted from your fund byProduct Provider and paid to us/ You are paying our fee directly to us.

If the client has not signed a proposal or input form, include a hard copy of the electronic data input, with the following sentence;-

I also enclose a copy of the information supplied to the insurer based on the details you gave me. It is essential the particulars are correct as they form the basis of the contract, therefore please check the form carefully and advise me as soon as possible of any discrepancies. Please note it is important that the insurer is advised if any changes occur before the policy commences.

I hope the above information accurately reflects the details of our conversations and I would therefore be grateful if you could sign a copy of this letter and return it to me for my records.

Yours sincerely

Adviser’s Name

Title

Received and agreed by:

Client’s Name………………………………..

Client’s Name……………………………….