UK life insurer Legal & General has agreed to offer free life insurance for customers with applications in the pipeline for a tax-efficient life insurance plan.

There will be two different types of cover, depending on the status of the case. However, both types will benefit from free cover with immediate effect.

The first type will offer free life cover up to GBP1 million. The cover is automatically available to cases in the pipeline whereby Legal & General has received the application up to close of business on December 6, 2006 and acceptance terms have been issued either electronically or by way of an acceptance letter. This is applicable to applications on an ordinary and rated term, excluding declined or postponed cases.

The second type offers a free accidental death benefit up to GBP300,000. This is automatically available to all tax-efficient life insurance plan applicants whose applications have been submitted to and received by Legal & General, who are awaiting underwriting and acceptance.

We are committed to providing peace of mind for people who feel unsure of their position now that the government has called into question the tax relief on pension term assurance, said Bernie Hickman, managing director for protection at Legal & General. Whether an applicant has received acceptance terms or is awaiting an underwriting decision, they will have at least some cover.