Legal and General to launch pension term assurance

24 March 2006
Legal and General is to offer a new tax-efficient life insurance plan, after the tax simplifications of "A Day".

The scheme will offer pension term assurance to those who do not have pension plans, and will also have less restrictive contribution limits than any current product.

Previously, rules on contributions to pension term assurance have been strict that it has not generally been suitable for the mass market.

The new plan will be available from April 10.

Legal and General's protection director Bernie Hickman explained: "We found that the majority of people found pension term assurance appealing, particularly those in the higher rate tax bracket where they could potentially save up to 30 per cent on their premiums, compared to ordinary term assurance."

Uniquely, Legal and General's plan will offer a waiver on premium benefit on pension term assurance.

After A Day, pension term assurance policies will be able to pay out lump sums to survivors with the same tax relief currently enjoyed only by pensions themselves.

Standard Life and Scottish Equitable Protect are also offering new pension term assurance products from April.

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