A new life and critical illness plan from Aviva could spark huge changes for the protection industry.
The relevant life plan with integral critical illness, is the first to hit the market which will offer tax relief to employers effecting the policy for one or more employees.
Alan Lakey, director at protection analyst, CI Expert said, “It is going to have a very serious impact on the protection market as relevant life has taken off in terms of protecting directors and employees. Probably the main focus for advisers has been on those who run their own limited company and it is the company who can take out the insurance and claim corporation tax relief. It is a far cheaper method than personal life insurance as long as the company is paying tax.’’
He added, ‘’I expect others to follow. They are not going to let Aviva get away with a monopoly.’’
The plan mirrors Aviva’s existing personal cover plan with the removal of children’s cover, which enables the tax efficiency, but includes terminal illness, 54 payment conditions and access to the Best Doctors service.
The plan can run until age 76, or 72 if Total Permanent Disability is included, with a minimum one-year term.
