Several protection providers have already pulled out of the pension term assurance market this morning and more are expected to do so later today, following comments in the Pre-Budget Report suggesting the product was being misused.
Friends Provident and Standard Life have all confirmed they have withdrawn the sale of life cover with tax relief products as of yesterday, Bright Grey, Legal & General, Norwich Union and Royal Liver have this morning confirmed their withdrawal and Bupa is just one of the names thought to be following suit later today. According to the ABI, approximately 17,000 PTA policies were sold in the UK in Q2 2006, while a further 44,500 were sold in Q3 this year. The ability to quote for such products has been withdrawn from IFA platforms and it is now thought the concept of life cover with tax ...
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