PTA dies a death in this year's Budget

Emma Walker, head of protection at price comparison website moneysupermarket.com, comments on today's Budget announcement on Pensions Term Assurance (PTA)

"Pensions Term Assurance has died a death in the Chancellor's last Budget despite only being available since April last year and it is clear that the tax relief is costing the Treasury too much".

""The Government signalled a crackdown on PTA in the pre-budget report in December but suggested a lifeline might be available in a revised form.

Instead, the Chancellor has banged the last nail in the coffin for this product.

"Our own research showed that nearly one in ten life insurance customers already have a Pensions Term Assurance product*, so this extremely unfortunate for those who have quite reasonably switched over from ordinary life insurance to save themselves money".

"Whilst this move was widely anticipated, it is disappointing for cash-strapped households who could be taking out tax-free life insurance." moneysupermarket.com is a website where consumers can compare financial and insurance products and apply online.

The website has 15 different insurance comparison services including motor insurance, home insurance, life insurance, private medical insurance, travel insurance, mortgage protection, income protection, pet insurance, dental insurance, and motor breakdown.

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