Legal & General to offer free temporary cover for pipeline ‘tax efficient life insurance plan’ business

Legal & General will offer free life cover for customers whose applications for Tax Efficient Life Insurance Plan (TELIP) are in the pipeline.

This will take one of two forms, depending on the status of the case. In both cases, the cover is free and effective immediately:

1.TELIP pipeline cases – free life cover up to £1million

This cover is immediately and automatically available to cases in the pipeline where Legal & General received the application up to close of business on 6 December 2006 and acceptance terms have been issued either electronically or by way of an acceptance letter.

This applies to cases accepted on ordinary and rated terms but not on declined or postponed cases.

2.TELIP pipeline cases – free Accidental Death Benefit up to £300,000

This cover is already available automatically to all TELIP cases submitted to, and received by, Legal & General currently awaiting underwriting and acceptance.

Bernie Hickman, Managing Director for Protection at Legal & General said: “We are committed to providing peace of mind for people who feel unsure of their position now that the government has called into question the tax relief on Pension Term Assurance. Whether an applicant has received acceptance terms or is awaiting an underwriting decision, they will have at least some cover.”