According to the findings of a survey by the Association of Independent Financial Advisers (AIFA), the market for Pension Term Assurance (PTA) is expanding.
Nearly 60 per cent of IFAs said they were now considering PTA when called upon to advise new business term assurance.
"This clearly demonstrates a strong interest in PTA and we expect it to be a growing market," said Fay Goddard, AIFA's deputy director general.
"This is good news for consumers as 67 per cent of respondents reported that typical savings on net PTA premiums - compared to ordinary term assurance premiums, for a basic rate taxpayer – ranged from six per cent to ten per cent, with 11 per cent reporting savings of over 15 per cent.
However, concern still remains over some of the specific rules of advising the product, a fact which is tempering the positive news.
"There seems to be a good deal of confusion surrounding the regulation of the sales process for PTA, which is not helped by the fact that advice can be given under two sets of rules," Ms Goddard continued, citing the Conduct of Business (COB) and Insurance Conduct of Business (ICOB) rules.
Ms Goddard added that the AIFA had published a factsheet to help make IFAs more aware of the rules governing their particular practise, as over half of respondents were unaware of which set of rules they were governed by regarding PTA advice.To read more about pensions, click here.
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