Aegon Scottish Equitable has increased its group life cover to age 75 after the FSA’s abolition of the Age 70 rule came into force yesterday.
The FSA Board voted to scrap the Age 70 rule, which restricts the sale of policies maturing beyond age 70 to Cob advisers, in April this year so, as of June 6, Icob advisers are allowed to sell life policies maturing after the age of 70.
Aegon will now offer group life cover, excepted group life cover, single life high earner’s cover and equity partner group life cover to age 75 but spouse and partner cover will remain at age 70.
Employee benefits head of marketing Simon Bailey says: “As people are living and working longer there is an increasing need for life cover at older ages. Following the recent age discrimination laws, many employers have begun to reassess their employment practices and the benefits they provide. Many companies have been asking for cover for those employees over the age of 70 and Aegon has responded to this need.”
Providers and advisers had been pushing for the regulator to axe the rule for sometime as they felt it was outdated in a society where people are living longer and retiring later.