Friends Provident is offering a pension term assurance (PTA) product - Tax Relief Life Cover (TRLC) - to coincide with the new A-Day legislation.
The product will enable customers taking out life cover with Friends Provident to benefit from tax relief on their premiums.
The cover will be available as single life on either a level or decreasing term basis, and Friends Provident says the premiums are expected to be at least 10-15% cheaper than its standard life cover product because of the tax advantages.
Premiums are paid net of basic rate tax, but higher rate taxpayers will have to claim the extra tax relief through their tax return.
Ian Jefferies, head of protection marketing at Friends Provident, says: “We are delighted that this exciting new product is ready to roll out on A-Day itself. We will be one of the first to bring pension term assurance to the market. The availability of tax relief on these life cover products should stimulate further growth, and will undoubtedly provide opportunities for advisers to write new business.”
The new rules on the sale of PTA, which come into effect today, mean PTA products can be sold under Insurance Conduct of Business (ICOB) rules.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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