L&G confirms it will not add CI to relevant life after HMRC discussions

In January this year, Aviva released a relevant life plan with a critical illness component. Several insurers and industry experts, including L&G, questioned whether this new product breeched taxation rules. In the aftermath of Aviva's launch, competitor insurers said they would be opening dialogue with HMRC as to whether they should add CIC to policies or not.  L&G has now warned: "If we were to add critical illness benefit to our RLP, this could lead to policyholders 'losing the beneficial tax treatment that RLP currently provides and makes this product so worthwhile.'" In a s...