Personal Pension Term insurance, is life insurance geared specifically towards the self-employed and to those in non-pensionable employment. It acts in the same way as a standard term life insurance policy, expect that you must meet a couple of requirements to apply for this cover:
Eligibility:
- You must be in employment.
- You must not already have life insurance provided by your employer.
Advantages
Tax Relief
If you do qualify for pension term insurance, the huge advantage is that you can claim tax relief on the premiums. If you pay the premiums personally you get up to 40% tax relief, whereas if you own a limited company and have the premiums paid out of company money the corporation relief applies.
Flexibility
Although you can only choose a cover term up to your normal retirement age, you can include a conversion option to allow you to extend the cover at the end of its original term.
Effecting a conversion option will mean changing over to a standard term insurance policy without tax relief, but without having to divulge fresh medical information at the time.
Restrictions
Although a great value option for eligible people, it does possess a couple of restrictions in comparison with standard term insurance life policies:
- You can only claim tax-relief on a life cover level of 4 times your annual regular salary.
- You cannot add your partner to this type of policy.
- You cannot assign a pension term policy against a loan.
Quotes
Adding to the premium tax relief advantage will allow a 10% discount on the cheapest market premiums, on personal pension term life cover. To arrange a quote click here or, call us on: 01 845 0049to speak with an adviser.
