On June 12 Barclays will become the first retail bank to launch an online pension term assurance product direct to consumers, offering one of the best value life insurance deals on the market. Barclays is so confident in its product and price that it will offer £50 to anyone who purchases cover but had been accepted for cheaper like-for-like cover elsewhere.*
Prices are being driven down partly due to new tax laws introduced in April (A-Day**) which means consumers can purchase life assurance within their annual allowance for pension contributions, giving tax relief of up to 40 per cent on premiums.
Chris Carter, head of retail life and protection for Barclays Insurance says: "If you want to cut the cost of an existing life assurance policy or if you think, like many people, you are under-insured, now is definitely the time to review your cover because there are substantial savings to be made by taking advantage of the new tax laws.”
For example, a male, non-smoker, aged 35 next birthday and buying £100,000 of life assurance cover from Tesco would pay £9.57 a month. However, if he chose a new pension term assurance from Barclays Insurance, as a basic rate tax payer he would pay just £8.30 a month, a saving of 13 per cent and as a higher rate tax payer this would be reduced by a further £1.92 to £6.38.***
Basic rate tax payers will automatically have the 22 per cent rebated, higher rate tax payers will have to claim back the additional 18 per cent on their self assessment tax returns.
Barclays Insurance Pension Term Assurance product details:
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Gross premium rates are guaranteed throughout the term of the product
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Range of cover available up to £200,000 (depending on age and circumstance)
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Level cover only (no decreasing option)
The online process should take no more than 15 minutes and involves answering eight simple questions
Carter continues: "This offering follows on from our price beating home, travel and motor insurance that we launched in 2005. As well as being amongst some of the cheapest in the market place, consumers also have the reassurance that we have teamed up with one of the leading insurance providers, Standard Life, to provide the product expertise, and with the strength of the Barclays brand, we are confident that consumers will be the real beneficiaries of this offer. Pension Term Assurance offers real opportunities for consumers to make significant savings on their cover, but it is not for everyone."
Barclays Insurance is provided by Standard Life, who will provide the product and technical support as well as dealing with the claims process. To take out a policy customers should visit www.barclayslifeinsurance.co.uk/.
