In addition to the launch of its stakeholder Scottish Equitable has introduced a new life cover o...
In addition to the launch of its stakeholder Scottish Equitable has introduced a new life cover option which employers of five to fifty staff can purchase as a packaged product.
ScotEq, knowing that some policyholders could not build up the same level of life cover as they could pre-stakeholder, has introduced group life cover.
A spokeswoman for the Aegon subsidiary, Louise McKiver, said the amount of life cover for people on average earnings has been dramatically reduced. What many people regarded as a good life cover figure – four times salary - is no longer achievable because of the new stakeholder tax regime, she added.
It would therefore be better, say ScotEq, for employees earning £18,000 or more to make contributions to both the stakeholder and the life cover options while those on low earnings would get reasonable life cover as part of their stakeholder contributions. The life cover scheme offers up to £11,000 of free cover per employee.
ScotEq sales spokesman Jonathan Black said: "As the whole industry gets to grips with low-cost operating practices of working in the stakeholder environment, a packaged sales approach like this saves the IFA valuable time and hence money."
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