Standard Life has introduced a new pension term assurance (PTA) product designed to help consumers make significant savings by offering high levels of tax relief.
The product can potentially allow consumers to save between eight per cent and 30 per cent on payments, compared to other conventional term assurance plans.
It has been called life insurance with tax relief (LITR) and can be used for both mortgage and personal cover.
It also can be converted to a conventional life assurance plan if a customer looks likely to exceed their pension lifetime allowance limit.
The product can offer automatic tax relief of 22 per cent, accidental death benefit and serious ill health cover.
Pension regulations do govern the product, but following recent changes made on A-Day, there is no need for customers to link the life insurance to a pension scheme to fully qualify from the tax relief benefits on payments.
"The launch of life insurance with tax relief provides a very affordable opportunity for people to review their protection requirements and ensure they are adequately insured," concluded Trevor Matthews, chief executive for life and pensions in the UK and Europe.
Standard Life Bank provides mortgages and a range of savings products. In 1999, a year after it was launched, the bank introduced its flexible mortgage Freestyle.
The bank currently has over 375,000 mortgage and savings customers.
New pension product with high levels of tax relief
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New pension product with high levels of tax relief
Tue, 25 Apr 2006
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