Axa Life Invest has launched an income drawdown option which allows policyholders to protect the amount they pass onto dependents if they die before age 75.
The plan, Protect75, can be taken out by anyone with a SecureAdvantage+ pension.
It carries an annual charge of 0.15 per cent of the pension value, and requires no underwriting or medical evidence.
Axa says if the value of the policyholder’s income drawdown at the time of their death is worth less than the amount they originally invested, Protect75 pays out a lump sum equivalent to the lost value, minus any withdrawals they have taken.
The option has been launched in response to the Government’s move to abolish the 55 per cent inheritance tax that applies to defined contribution pension pots left by those aged 75 or over, and to pensions in drawdown. The change also applies to value protected annuities.