'Large demand' for HSBC Pension Term Assurance

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'Large demand' for HSBC Pension Term Assurance

Mon 9th Oct 2006

The HSBC Pension Term Assurance (PTA), a life insurance product, has been selling like hot cakes according to the bank.

The product, which offers customers up to 40 per cent tax relief on premiums, presently accounts for more than eight out of ten (84 per cent) of all life only policies sold

Back in May, HSBC became the first bank to offer a PTA product, taking advantage of government legislation that simplified the pensions market.

Head of insurance products at HSBC, Dennis Smith, spoke of the chief benefit of the product being significant tax relief: "For most customers, and almost certainly anyone earning less than £75,000 a year, a PTA policy will very likely be the best option."

He continued: "It is not common for [chancellor of the exchequer] Gordon Brown to be this generous but in this case he is effectively offering to pay up to 40 per cent of your insurance premium for you."

Mr Smith went on to explain that the bank was in the process of contacting some 22,000 people who could receive cheaper premiums from a PTA policy.

Alongside the HSBC Pension Term Assurance, other protection products offered by the bank are the HSBC offers Life and Mortgage Cover with Tax Relief and free Terminal Illness Benefit, Accidental Death Benefit, Interim Life Cover and the Mortgage Guarantee.

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