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more 2 lifeWelcome to our webinar

Welcome to our webinarEnhanced Equity Release

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Introductions

Stuart WilsonChannel Marketing Director

• 25 years’ Financial Services experience• Worked for Primetime Retirement/Living Time,

LV=, Just Retirement and Friends Life

Mike MillarHead of Sales

• Previously Equity Release Director at Partnership• Focused on product development and worked on

pioneering products including introducing enhanced equity release into the market

Agenda

• Learning outcomes

• more 2 life

• The market

• Drivers for change/growth

• The challenge

• Asking the right questions

• Enhanced Plan

• Q&A

Learning outcomes

• After this webinar you will have an understanding of and be able to identify:

1. The opportunities and growth in the lifetime mortgage market

2. The challenges in the market and the need to ask your clients about their health and lifestyle

3. The benefits of asking the right health questions

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Housekeeping

• Raise a hand• Ask a question

Send

Will copies of the slides be available?

Enhanced Equity Release:Are you asking the right

questions?

Mike Millar

About us

• more 2 life is an innovator and pioneer in LTM market.

• New management team Dave Harris, M.D, Will Hale, Business Development Director, Stuart Wilson, Channel Marketing Director and Mike Millar, Head of Sales.

• Continues to focus on adviser firms with market-leading products and special deals.

• Looking at new funders

Growth of Lifetime Mortgage market

• Market enjoying new boom• Lending levels back to pre-credit crunch

levels and set to grow further

Source: Equity Release Council

2011£788.6M

2012£925.7M

2013£1.07B

Drivers for change/growth…

• Ageing population – average male life expectancy at age 65 now 22 years, will be 25 by 2050

• Retirement saving shortfall• Rise of retirees who are asset rich / cash poor• Cultural shift to lifestyle vs. inheritance

obligation• Long-term care funding need

Drivers for change/growth…

• Recent Budget announcements will stimulate innovation and awareness

changes to annuities will require “a whole different approach to funding retirement”

Paul Smee, Director-General, CML

Drivers for change/growth…

Harold• Retired at 65• Life expectancy limited

(c.5 years)• Retirement planning

choices limited (annuity)

Harry (great grandson)• Retirement is phased• Life expectancy 20+

years• Holistic retirement

planning choices huge…and about to get bigger

Changing face of retirement

Drivers for change/growth…Equity Release following annuity model

Standard Lifetime Annuities

Smoker Annuities

Enhanced Annuities

(Over 1000 conditions)

Standard Equity

Release

Enhanced Equity

Release

The challenge

• PAFS introduced medically underwritten annuities into the UK in 1995

• By 2004 less than 10% of the annuities bought were enhanced.

• Heightened awareness and the introduction of TCF meant that by 2013 as many as 60% of annuitants could qualify for some form of enhancement.

The challenge

• Around 2009 a website appeared www.missoldannuity.co.uk

• The ambulance chasers are now on the case

“Have you been asked medical

questions?”

“You could be entitled to

compensation”

“No, why?”

The challenge

What’s this got to do with equity release?Everything• Under TCF outcome 4 you must take all your

client’s circumstances into consideration.• Do you always ask your clients about their

health?

The challenge

2007 2014

Missoldequityreleasedot com

Enhanced Equity Release first launched in UK

How many clients who would have qualified for an enhanced LTV received a standard one instead?

Did you know?

Did you know?

The question you shouldn’t ask

Are you fit and

healthy?

Fit as a butcher’s

dog!

He doesn’t need to know

about the statins I take…

OR

YES NO

Health Questions

The questions you should be asking

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If you smoke manufactured cigarettes, have you smoked 10 or more cigarettes per day for the last 10 years?

If you smoke rolling tobacco, have you smoked more than 3ozs or 85g per week for the last 10 years?

Have you been diagnosed with high blood pressure, requiring on-going medication?

Have you suffered a heart attack requiring hospital admission?

Do you suffer from diabetes, requiring insulin or tablet treatment?

OR

YES NO

Health Questions

The questions you should be asking

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Have you suffered from a stroke (CVA), excluding mini-strokes (TIAs) ?

Have you suffered from angina, requiring on-going medication?

Have you been diagnosed with cancer (excl. skin cancer and benign tumours) requiring surgery, chemotherapy or radiotherapy?

Have you been diagnosed with Parkinson`s disease?

Have you been diagnosed with multiple sclerosis?

Have you taken early retirement on the grounds of ill health?

Our Enhanced Plan at a glance

• Takes into account health and lifestyle conditions to allow a larger release

– No medical examination required– No monthly repayments– The loan, plus interest, is repaid when the property is sold– Cash facility available so your client can release more money in stages

if they wish to*– Protected Equity Guarantee option meaning an inheritance can be

guaranteed to your clients’ beneficiaries– Straightforward application process

* Subject to prevailing criteria at the time of application for further funds.

Enhanced Plan eligibility

• For our Enhanced Plan, clients must meet the following lending criteria:

– There is no maximum age– Have a health or lifestyle condition which makes them eligible for the

Enhanced Plan.  – Have UK or EU citizenship with permanent rights of residency in the UK– Resident in the UK and able to provide an address history covering the

last 36 months– Property must have a minimum valuation of £60,000. Maximum loan

amount is 100% of the LTV on first million and 50% of the LTV on second million.

– If the property is leasehold, our criteria for the minimum number of years left on the leasehold must be met.

Enhanced LTVs - examples

5minutes

13questions

+£15,000

USPs

• Enhanced/Max cash– Enhanced terms based on age, lifestyle and

health (higher LTVs )– Drawdown available – Protected Equity Guarantee (PEG)– Medical questions

• Cancer not restricted to last 5 years• Parkinson's no requirement for aids for everyday

living • MS no requirement for aids for everyday living

Questions…

More information…

This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.