Product category:
Protection
News Release from: LifeSearch | Subject: Protection
Edited by the Insidemoneytalk Editorial
Team on 22 March 2007
Disappointed, but not surprised -
LifeSearch comments on death of PTA in
today's Budget
LifeSearch are disappointed, but not surprised by the Chancellor's decision today to end the availability of tax-relief on term life insurance products.
Pension Term Assurance represented an excellent opportunity to help close the ?2.3trn UK protection gap for Britain's families While those who do not have access to life assurance through their employer are now at a further disadvantage because of the decision
This article was originally published on Insidemoneytalk on 14 Mar 2007 at 8.00am (UK)
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Head of Protection Strategy, Kevin Carr, said "What is most disappointing is that this was an informed error by the Treasury, followed by a damaging u - turn, which has cost the insurance industry tens of millions - for a market that effectively lasted just nine months".
"Such practice does nothing to improve consumer trust in the financial services industry." It seems that contractual changes to existing polices, such as insurability options and indexation have been allowed, however, any voluntary amendments will not be permitted.
Customers who applied before the pre-budget report in December who are currently in underwriting have until April 5th for their policies to commence in order to receive tax-relief.
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