Zurich UK Life enhances ‘at retirement’ proposition

Zurich UK Life is enhancing its ‘at retirement' proposition, which includes a new annuity provider, Legal & General, offering many of its customers' greater choice.

The agreement with Legal & General will enable Zurich to offer market leading annuity products to customers who do not wish to use the Open Market Option.  Zurich is also refreshing its communication material to reiterate the importance of independent financial advice and the benefits of the Open Market Option which it strongly believes in most instances is the best option for the customer.  

Dave Lowe, Zurich UK Life Pension Management Director said: "For most of our pension customers we recognise that getting independent financial advice will usually be the best option - helping them with exercising their Open Market Option - yet in our experience some of our customers choose not to use this option.  For those that don't, our agreement with Legal & General will allow us to offer greater choice."  

"We have undertaken a full review of our end-to-end process and sought to identify areas where we might improve communications and highlight the benefits that might be available by exercising the Open Market Option.  At the same time, we want to ensure that customers, who choose not to shop around, can access products from an annuity specialist."

From today (1 October 2010), Zurich UK Life will compare a Zurich rate with a Legal & General rate before issuing quotes to retiring customers and will only issue the better rate.

The new agreement with Legal & General will enable Zurich's pension customers with smaller funds to benefit from access to leading annuity rates from a competitive annuity provider and also benefit from enhanced rates should they be in poor health.

Simon Gadd, Managing Director for Legal & General's annuity business commented; "This is a hugely important relationship for Legal & General's individual annuity business. Zurich's customers can rely on our expertise to provide them with competitive annuity rates and the security that our name provides. All in all, this is a very attractive proposition for Zurich's customers and we look forward to a lasting and productive relationship."