Article date: 15 May 2006
Norwich Union is today launching a newpension term assurance (PTA) product for single lives. This followsthe increased flexibility in pension term assurance rulesintroduced as part of the A-Day pension reforms.
- Life Insurance with Tax Relief is a level termproduct for personal protection, designed to offer the benefitsof a traditional life protection policy.
- Mortgage Life Insurance with TaxRelief, a decreasing term product, is alsoavailable for mortgage protection purposes.
Both products will benefit from tax reliefon premiums (at the individual’s taxable rate).
Comparison of premium
Life insurance withtax relief
Male, NS, 35nb
Female, NS 30nb
Louise Colley, head of protection at NorwichUnion, said: “The protection gap in the UK stands at amassive £2.3 trillion pounds1 and over half the UKpopulation does not have life cover in place2. Theintroduction of tax relief will make these products more affordableand help more people get adequate insurance cover in place.
“The new PTA products should benefit many people; however asthese products may have implications for an individual’sannual pension contribution and lifetime limit, we believe thatpeople should take advice before making any decisions”.
Product features include:
- An individual does not have to have a pension in order to takeout a Life Insurance with Tax Relief or Mortgage Life Insurancewith Tax Relief
- Tax savings will be deducted at source for basic rate tax payersand higher rate tax payers can claim back throughself-assessment
- Any cash lump sum will normally be free of inheritance tax
- Guaranteed Replacement Benefit cover option available for thosewho become ineligible due to exceeding annual contribution limit
- Terminal illness benefit is included (although this is dependanton the customer not exceeding their lifetime limit)
- Customers will automatically become a member of themulti-manager pension plan
- Single lives only / no options.
1 Source: Swiss Re Term and health watch2005
2 Source: Swiss Re Term and health watch 2005
Press office contacts:
Robert Pell 01904 452659 Out of hours 07800 699563
Cheryl Cox 01904 452791 Out of hours 07800 695275
David Gwyer 01904 452828 Out of hours 07800 699508
Notes to editors:
- Norwich Union is the UK’s largest insurer. It is a leadingprovider of life, pensions and investment products and one ofthe largest Financial Adviser (FA) providers. FAs provide over70% of the company's long-term savings business in the UK.
- Norwich Union is the UK’s largest general insurer with amarket share of around 14%, with a focus on insurance forindividuals and small businesses.
- Norwich Union’s news releases and a selection of imagesare available from Aviva's internet press centre at www.aviva.com/media