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Scottish Equitable Protect Enhances PTA

Scottish Equitable Protect has quickly enhanced its life protection with tax relief (LPTR) policy with the introduction of an option to replace a current LPTR plan with a term assurance policy under certain circumstances, writes Richard Eagling.

The good news for customers who have already taken out a life protection with tax relief policy with Scottish Equitable Protect is that the option itself will be applied retrospectively to 6 April 2006. Clients will now be able to apply to replace their LPTR policy with a standard term assurance plan if they become ineligible for life protection with tax relief or if they are at risk of exceeding the lifetime allowance on their death.

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Underwriting terms will be the same as those that apply to the original life protection with tax relief policy so no further information on their health will be required. Premiums for the new term assurance policy will be based on the rates applicable to their age at the time of replacement and the sum assured must also remain unchanged.

Commenting on the enhancement, Rod McKie, Head of Marketing at Scottish Equitable Protect, said: “The first few months for the life protection with tax relief (LPTR) market has surpassed most people’s predictions, with sales taking off far quicker than expected. One area of product design that has come under a reasonable amount of focus since launch is that of options allowing customers to move back into a standard term assurance plan without the need for further underwriting under certain circumstances. Whilst we predict the number of customers who are likely to want to exercise such an option as being very low, we are committed to helping this market flourish by removing as many potential issues for advisers as possible.”