Pension News Norwich Union Lends A Hand As PTA Phased Out
13 December 2006
Pensions term assurance (PTA) providers have been leaving the market in droves since last week, when the government’s pre-budget report revealed the tax breaks under the scheme, introduced in April, would be phased out.
The announcement has produced consternation among consumers left in limbo with their PTA applications in the pipeline – but Norwich Union is now offering its own solution to ‘pipeline’ customers, according to the Financial Times.
Britain’s largest insurance provider will give free cover to pipeline customers applying for its life insurance with tax relief or mortgage life insurance with tax relief products.
Louise Colley, head of protection marketing, said Norwich Union aimed to give these customers “peace of mind that they have life cover in place” in the midst of “considerable confusion around the PTA market”.
The Treasury fears tax relief on pensions term assurance schemes, which do not require savers to make contributions, could deter Britons from saving towards their pensions.