Friends Provident (FP) is to offer a pension term assurance (PTA) product coinciding with the new A-Day legislation in the UK. Called tax relief life cover (TRLC) it will enable customers taking out life cover with the firm to benefit from tax relief on their premiums.
The cover will be available as single life on either a level or decreasing term basis. FP says that, due to the tax advantages on average the premiums are expected to be at least 10-15% cheaper than the standard life cover product. Premiums are paid net of basic rate tax, higher rate taxpayers will have to claim the extra tax relief through their tax return.
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, says Ian Jefferies, head of protection marketing at FP.