Norwich Union, the UK's largest insurer, is to offer free life cover to pipeline customers applying for life insurance with tax relief and mortgage life insurance with tax relief.
According to the company, this measure is intended to ease the concerns of customers and advisors confused in the wake of the pre-Budget report’s announced changes to Pension Term Assurance (PTA) rules.
The offer, which will be available until further notice, will provide free life cover for all customers who have acceptance terms, as well as for customers who fall outside the time period of Norwich’s ‘Protection Promise’, which gives free life cover between application and acceptance of a policy for a maximum of three months.
Louise Colley, head of protection marketing at Norwich Union, said: This week’s pre-Budget report has introduced considerable confusion around the PTA market and many insurers, including Norwich Union, have suspended sales until there is more certainty.
This ensures advisers are able to offer reassurance to Norwich Union customers, and that customers who have applied for PTA policies now have the peace of mind that they have life cover in place, she concluded.