Scottish Equitable is providing a group pension life cover product designed to complement its group personal pension and stakeholder plans.
The product has been developed following the changes to group pension life cover introduced on April 6 as part of the new tax regime for defined-contribution pensions.
The new regime allows a GPP or stakeholder pension policyholder 10 per cent of the pension contribution available to be paid towards life cover compared with 15 per cent of relevant earnings in the previous tax regime before stakeholder.
ScotEq says the changes mean many scheme members face having less cover under the new regime.
Its pension group life cover is designed to sit alongside GPPs or stakeholders with five to 50 members and also alongside any group life plan to offer easier access to cover.
The scheme offers free cover up to £11,000 to staff joining the pension scheme even if they do not elect to join the life insurance part.
Head of group pension sales Jonathan Black says: “Being able to offer IFAs the complete group pension and life cover solution gives us a competitive market advantage. As a whole industry gets to grips with low-cost operating practices in the stakeholder environment, a packaged sales approach like this saves the IFA valuable time and hence money.”