Norwich Union is offering free life cover to customers with pension term assurance policies which have been caught in the application process since the pre-Budget Report on Wednesday.
The free cover will apply to those customers who have submitted applications for NU’s life insurance and mortgage life insurance with tax relief products and will be available until further notice.
This is being offered in addition to NU’s existing protection promise which pays out if the consumer dies between the submission of the application and acceptance of the case on a time period of up to three months.
The free cover will be for all customers who have acceptance terms and those who fall outside the three month time period of the protection promise.
The amount payable on death is equal to the sum assured or £1 million depending on which one is lower.
Norwich Union head of protection marketing Louise Colley says: “This week’s pre-Budget report has introduced considerable confusion around the PTA market and many insurers, including Norwich Union, have suspended sales until there is more certainty.
“With this move, Norwich Union is leading the way in offering security for its customers until there is more clarity in the marketplace.
“This ensures advisers are able to offer reassurance to Norwich Union customers, and that customers who have applied for PTA policies now have the peace of mind that they have life cover in place.”