 |
|
|
|
Insurance Directory >> Life Insurance News UK Life Insurance NewsThursday, May 04, 2006
Standard Life launches life insurance with tax relief
Standard Life today announced details of its new Pension Term Assurance (PTA) product, which takes full advantage of the new rules applying to PTA payments.
The product will be available from 24th April via Financial Advisers, Mortgage Brokers and Standard Life Direct and will be called Life Insurance with Tax Relief (LITR). LITR will offer savings on payments of anywhere between 8% and 30%, depending on tax status, compared to conventional Term Assurance. Although the product is governed by pension legislation, under the new A-Day rules consumers do not need to link the insurance to a pension to qualify fully from the tax relief on payments. LITR will be available as both level and decreasing term cover and can be used for personal and mortgage protection. LITR has a built in conversion option, which will allow clients to convert to a conventional life assurance plan with no additional underwriting if the client is at risk of exceeding their pension Lifetime Allowance Limit. Other features of the product include:
If this product is purchased through Standard Life Direct the above options are not available. Policies can be written under Trust allowing quicker payments to the estate on death subject to trustee approval and discretion over to whom to pay the benefit. Mick James, Marketing Manager, Protection said:"Life Insurance with Tax Relief provides a very affordable opportunity for people to review their protection requirements and ensure they are adequately insured, helping to close the £2.4 trillion personal protection gap that currently exists in the UK." Mick James concluded: "Many people are concerned about the potential effect any payout may have on their pension Lifetime Limit. Although something to keep an eye on, given that only 250 of our individual pension customers at present have benefits in excess of £1 million I don?t think this will be a problem for most people. For those lucky individuals who have built up large pension benefits and are in danger of exceeding their Lifetime Limit, our free switching option means they can maintain cover without penalty." posted by UK Insurance Index @ 8:42 PM
 
News items are intended for information only and should not be relied upon when making insurance decisions. Due to their nature some of the information in these news stories may no longer be current. |
|
