Norwich Union is offering a group life insurance scheme for unapproved top-up benefits to complement its existing exempt approved group life scheme.
The firm says it is offering the product even though pension simplification proposals may remove many of the tax advantages for funded unapproved retirement benefits schemes and limit the need for unapproved schemes after April 2005.
The scheme will offer top-up benefits where the employer has an existing exempt app-roved group life scheme written under an excepted policy, removing the potential for tax liability on second and subsequent deaths.
For schemes of 25 or more members, a single unit rate will apply and combined free cover limit is available across both exempt approved and top-up schemes.
Business development manager (group risk) Paul Stevens says: “We recognise the immediate needs of our customers and have decided to launch this product now. This will enable Norwich Union to compete in a section of the group life market that includes bigger employers.”