Norwich Union offers free life cover through period of PTA uncertainty

Norwich Union will offer free life cover to pipeline customers applying for Life Insurance With Tax Relief and Mortgage Life Insurance With Tax Relief.

This will provide peace of mind for customers and advisers who are confused by the announced changes regarding Pension Term Assurance (PTA) rules in the pre-Budget report.

The offer of free life cover is in addition to Norwich Union’s existing Protection Promise.

The benefits for customers are:

Free life cover for all customers who have acceptance terms
Free life cover for customers who fall outside the time period of the Protection Promise
The amount payable on death is equal to the sum assured or £1 million, whichever is lower

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.

“With this move, Norwich Union is leading the way in offering security for its customers until there is more clarity in the marketplace.

“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.”

The offer of free life cover for Norwich Union pipeline customers will be available until further notice.