Zurich International Futura

An independent review of Zurich International Futura by our team of experts

Summary

Zurich International Futura is a whole-of-life, unit-linked protection policy, underwritten by Zurich International Life (authorised in the Isle of Man) and offered through Zurich's Middle East business, part of Zurich Insurance Group, one of the world's largest insurers with over 140 years' experience across some 170 countries.

Futura provides life cover with a wide range of optional benefits, including critical illness, permanent and total disability, waiver of premium, family income and accidental death cover, and can be owned by individuals, trustees or companies. Although marketed as flexible, it is, in AES's view, an expensive and risky way to buy protection, as explained in the verdict below.

Zurich's Middle East business is regulated by the Central Bank of the UAE (which absorbed the former UAE Insurance Authority), the Central Bank of Bahrain and the Qatar Financial Centre Regulatory Authority.

Pros

Wide range of optional benefits (riders)
Adaptable cover
Portable if you leave the UAE

Cons

Expensive
Less flexible than it appears
Commonly mis-sold
No value in first 24 months (funds commission)

Our verdict

Zurich International Futura is a whole-of-life, unit-linked protection policy, and it is one of the products AES sees mis-sold most often. The principle it offends is a simple one: insurance should be bought for insurance, and investments for investment. Bundling the two tends to produce an expensive compromise that does neither job well.

The structure is the problem. Premiums are typically illustrated assuming the underlying funds grow at around 9 per cent a year after costs, a figure that is wholly unrealistic. When that growth fails to materialise, the policy does not simply underperform; Zurich can demand higher premiums, cut the cover, or lapse the policy with no value at all. The first 24 months usually build no value whatsoever, because contributions in that period are largely funding the commission paid to whoever sold it. And the unit-linked element is not a savings pot to draw on; it exists to absorb the sharply rising cost of cover after age 55.

For most people, annually renewable term insurance, or pure international term cover, provides the same protection far more cheaply, sometimes for around a fifth of the cost, with more flexibility and less risk.

If you already hold a Futura policy, do not simply cancel it without advice, particularly if your health has changed. Speak to a professional, fee-based fiduciary first. If the policy is worth around GBP 500,000 or more, a no-obligation Second Opinion from AES will show whether it is serving you, and what a better-structured alternative would look like.

FAQs

What are the main risk factors with Zurich Futura?
- Futura is a long-term commitment. If you stop or reduce premiums the policy can lapse, ending all benefits with no money back. Its value is linked to the funds you choose, so if returns are lower than illustrated you may have to increase premiums to maintain cover. Withdrawals can also cause the policy to lapse, and a claim may not be paid if your application was not completed fully and accurately.