Equity Release

Research suggests that we're not very good at talking to our parents about money*. In fact, a staggering 76% of adult children with parents aged over 60 hadn't discussed their parents' finances with them.

If your parents are over 55, they may want to consider an equity release plan as a way of boosting their finances in retirement - and it's important to involve the whole family in reaching a decision.

* Source: Offspring Omnibus Survey, October 2007

This is a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.

Talking it through with your parents

Equity release is one of the options your parents may want to consider to improve their financial situation in retirement. It's a way of unlocking some of the equity in their home to provide them with a cash lump sum. They can use the cash for whatever they like - to top up their income, make home improvements, take a holiday or pay for healthcare.

However, taking a lump sum through equity release also has additional costs and will reduce the value your parents have in their property, possibly to nothing. This will affect the value of any inheritance they leave. Their entitlement to tax and welfare benefits may also be affected.

Of course, equity release is a big decision for your parents and for you, so you'll want to talk it through as a family, to understand the options and take time to reach the right decision.

Request our free equity release DVD guide. See what some of our customers say about equity release and how it's helped them achieve their retirement dreams.

Can your parents stay in their home?

Yes, they can continue to live in their home until they both die or move into long-term care. And, if they decide that they'd like to move house, they can transfer the equity release plan to the new property as long as it meets the conditions.

How will your inheritance be affected?

You'll need to bear in mind that taking a cash lump sum will reduce the value your parents have in their home and, therefore, reduce the amount of inheritance they are able to leave you from the property.

Safe Home Income Plans

Norwich Union is a member of Safe Home Income Plans (SHIP), a group that helps guide those who choose to release the equity in their property and ensures providers adhere to the following code of practice:

• To provide a fair, simple and complete presentation of plans.
• To ensure that the customer's legal work is performed by a solicitor of their choice.
• To clearly state the main cost to the householder's assets and estate.
• To carry a 'no negative equity' guarantee (your parents will never owe more than the value of their home).

Talk to a Norwich Union adviser

Our expert advisers will be able to help your parents understand which solution is best suited to their personal circumstances. They can call us on 0800 404 6220** to book an appointment and one of our advisers will visit your parents at home for an informal meeting - with no obligation and no hurry to proceed.

We recommend that family members attend this meeting too, as it will give them a great opportunity to ask as many questions as they want.
Any advice given will relate only to the products sold or marketed by Norwich Union.

** Lines are open Monday to Friday 8am - 8pm, Saturday 9am - 5pm and Sunday 10am - 4pm. Calls may be recorded and/or monitored.

Norwich Union Equity Release Limited. Registered in England No 3286484. Registered office 2 Rougier Street York YO90 1UU. Authorised and regulated by the Financial Services Authority.

WC07046 10/2008