Norwich Union is offering to continue the handling of pipeline PTA cases despite the recent changes announced by the Treasury.
NU last week announced it would offer free life cover to clients who had life insurance with tax relief “in the pipeline” but had not yet completed the case.
The firm’s latest move, however, is NU says it will now complete all life insurance with tax relief and mortgage life insurance with tax relief pipeline business and offer clients the option of converting to an equivalent non tax relief policy.
The Treasury last week announced it was reviewing the status of pension term assurance policies because they were being sold as standalone policies rather than as part of a pension proposition and on the back of this, most insurance firms withdrew PTA business which had not been completed while the consultation is held between the Treasury and the industry.
NU now says policyholders should hold onto their existing applications if their plans are still in the pipeline, at least until clarification is provided.
Should the Treasury withdraw tax relief for pipeline cases, NU says will convert them to a non-tax relief policies without needing to complete a new application when it happens.
But the life insurer is the meantime calling on the Treasury to honour the tax relief pledge for to those customers who applied for the policy prior to pulling the plug on 5th December.IFAonline
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