New Life Assurance From L&G

Legal & General (L&G) is launching a new pension term assurance product available to all, even if you do not have a pension plan.

The Tax Efficient Life Insurance Plan, available from the 10th April 2006, is a less restrictive policy for customers following government plans to relax the rules on pensions.

The pension term assurance policy will pay out a lump sum to dependants if the policyholder dies and gives the same tax relief as a pension.

The protection provider says the new plan offers single life cover to ensure simplicity, terminal illness cover, tax relief on premiums and commission paid on the gross premium.

L&G is also providing a waiver of premium benefit as a separate policy to give customers peace of mind, if they are unable to work due to illness.

Bernie Hickman, protection director at Legal & General said: "We found that the majority of people found pension term assurance appealing, particularly those in the higher rate tax bracket where they could potentially save up to 30 per cent on their premiums, compared to ordinary term assurance.

"However, it is important that customers understand the eligibility terms for this product, the tax position and any potential impact on their pension arrangements."