Aviva has launched a revised version of its Relevant Life insurance plan to meet the HM Revenue and Customs (HMRC) requirements.
The first ever Relevant Life policy was rolled out in January 2016 with critical illness cover (CIC). However, advisers expressed concern that the policy might be breaching HMRC guidelines.
As a result, the British insurer decided to replace CIC with ‘employee significant illness cover’.
Partial payment options have also been removed from the policy and only the most serious conditions, including advanced cancer, serious heart attack and stroke are covered in the new version.
Some advisers were uncertain about the product since a number of other providers had expressed doubts about whether the product complied with tax rules, FTAdviser quoted Aviva head of protection distribution Mark Cracknell as saying.
Advisers or clients who have an existing Relevant Life policy will not be affected by the changes. It will also not impact those who have a policy application arising from binding quotations in place by 11 March 2018.