Article date: 13 December 2006
Norwich Union will complete Life Insurance With Tax Relief andMortgage Life Insurance With Tax Relief pipeline business. It willalso offer the option for these pipeline customers to convert theirapplication to an equivalent, non-tax relief life insurancepolicy1.
This move follows the recent announcement regarding Pension TermAssurance (PTA) in the pre-Budget report. If tax relief issubsequently withdrawn for pipeline PTA customers, Norwich Unionwill convert these policies to a non-tax relief life insurancepolicy at that time.
Norwich Union believes that all pipeline PTA cases should attracttax relief to ensure the fair treatment of those customers whoapplied prior to the announcement in the pre-Budget report and itwill continue to press for this to be recognised on behalf of itscustomers.
Some customers and advisers may wish to convert to a non tax relieflife cover policy immediately and Norwich Union is providing thisfacility for pipeline PTA customers to convert to an equivalent nontax relief life cover policy without the need to complete a newapplication form2. However, Norwich Union stronglybelieves that the best approach for customers will be to continuewith their PTA application until further clarification isavailable.
Louise Colley, head of protection product marketing at NorwichUnion, said: “Norwich Union is putting its customers at theheart of this issue by starting to accept pipeline PTA cases on theunderstanding that they will be converted to an equivalent non-taxrelief life insurance product, if necessary.
“We believe that this will be the best solution for themajority of customers. However, by offering a choice, we have givencustomers and advisers the best of both worlds.
“There is still uncertainty in the marketplace surroundingthe treatment of pipeline PTA customers, but Norwich Union willcontinue to look for the fairest outcome for allcustomers.”
1 This option to convert to an equivalentnon-tax relief life insurance policy remain open until 12 January2007. Customers will not have to resubmit an application form. Adeclaration for signing and a key features document will beavailable from the adviser sales centre.
2 Norwich Union’s offer of free life cover (8December 2006) will extend to those pipeline customers who convertto a non-tax relief life insurance policy until policy commencementor 12 January 2007, whichever is sooner.
Press office contacts:
Robert Pell 01904 452659 Outof hours 07800 699563
Louise Soulsby 01904 452617 Out of hours 07800 699526
Notes to editors:
About Norwich Union
Norwich Union is theUK’s largest insurer. It is a leading provider of life,pensions and investment products and one of the largest financialadviser (FA) providers. FAs provide over 70% of the company'slong-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 images areavailable from Aviva's internet press centre at www.aviva.com/media