Norwich Union offers further choice during PTA uncertainty

Norwich Union will complete Life Insurance With Tax Relief and Mortgage Life Insurance With Tax Relief pipeline business.

It will also offer the option for these pipeline customers to convert their application to an equivalent, non-tax relief life insurance policy.

This move follows the recent announcement regarding Pension Term Assurance (PTA) in the pre-Budget report. If tax relief is subsequently withdrawn for pipeline PTA customers, Norwich Union will convert these policies to a non-tax relief life insurance policy at that time.

Norwich Union believes that all pipeline PTA cases should attract tax relief to ensure the fair treatment of those customers who applied prior to the announcement in the pre-Budget report and it will continue to press for this to be recognised on behalf of its customers.

Some customers and advisers may wish to convert to a non tax relief life cover policy immediately and Norwich Union is providing this facility for pipeline PTA customers to convert to an equivalent non tax relief life cover policy without the need to complete a new application form. However, Norwich Union strongly believes that the best approach for customers will be to continue with their PTA application until further clarification is available.

Louise Colley, head of protection product marketing at Norwich Union, said: “Norwich Union is putting its customers at the heart of this issue by starting to accept pipeline PTA cases on the understanding that they will be converted to an equivalent non-tax relief life insurance product, if necessary.

“We believe that this will be the best solution for the majority of customers. However, by offering a choice, we have given customers and advisers the best of both worlds.

“There is still uncertainty in the marketplace surrounding the treatment of pipeline PTA customers, but Norwich Union will continue to look for the fairest outcome for all customers.”