Pension Term Assurance, the novel type of life insurance policy that for some time offered assurance customers the potential for tax breaks on their life insurance policy is well and truly over. The Chancellor, who released his budget at the end of March, signaled a crackdown on PTA.
There was some hope for the policy product, because in the pre-budget report a revised form was mentioned. However, the Chancellor gave the kiss of death to the novel insurance product.
For cash-strapped households and consumers, the product offered a small break, a way to get tax-free life insurance. The U-turn on the product may have alienated a number of voters, and in a climate where under-insurance is prevalent; many financial experts have questioned government decisions.
Unfortunately, the cost of the product to the Treasury has been deemed as being too high, causing anger in the insurance community.




