Norwich Union has announced it is launching a group life insurance scheme for unapproved top up benefits.
The group life insurance scheme is aimed at employers who wish to provide life insurance benefits for their workforce, with the top up benefits scheme designed to make employers able to provide their workforce with lump sum cover for benefits in excess of Inland Revenue's limits. It provides life cover for employees who have salaries in excess of the earnings gap, or members who need lump sum death benefits based on a salary multiple greater than four times salary.
NU group risk business development manager Paul Stevens says: “We are aware that pensions simplification proposals may remove many of the tax advantages for FURBS and limit the need for unapproved schemes after April 2005, but we recognise the immediate needs of our customers and have decided to launch this product. The addition of this product will enable Norwich Union to compete in a section of the group life market that includes larger employers.”