Insurers waive right to provide waiver benefits

Professional Adviser
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Popularity of waiver of premium benefits, which was previously bundled as an addition within pension...

Popularity of waiver of premium benefits, which was previously bundled as an addition within pension premiums, has reached an all-time low as some insurers without a general insurance arm are closing shop to this product. Before the introduction of Stakeholder pensions in 2001, waiver benefits were bundled into personal pension premiums, resulting in the whole premium benefiting from tax relief. In the post-Stakeholder era, the Department of Work & Pensions and the Inland Revenue ruled contracts must be separated, as waiver premium was no longer able to receive tax relief. ...

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