Pension Assurance: Life Cover Advice
Pension Life Insurance Cover Rules - Pension Term Assurance (PTA)
- This is life insurance that is provided under a pension's scheme rules.
- You can have a pension policy that is just life insurance only although not many companies now offer it.
- You can also have a pension policy that is both pension savings and a life insurance policy combined.
- Pension life insurance no longer receives any tax relief on premiums paid in the way that normal pension payments still do. If you took out a pension term life insurance scheme before 6 April 2007 then tax relief will continue on the premiums that you pay.
- This means that there is no real advantage in taking pension life insurance or pension term assurance.
- You may still be able to arrange life insurance through your pension scheme though if you wish - not all pension companies will now allow this.
You should be aware that any pay out of a pension life insurance policy uses up part of the pension lifetime allowance and if you die and the pension life insurance death benefit, after being added to your normal pension fund values exceeds the allowance, there will be a tax charge.
Separate Life Insurance Cover:
- Many people have continued to arrange their life insurance protection separate to their pension.
- Many employers still offer Company Life Insurance Schemes to their staff.
- We suggest you browse our Life Insurance section to find out more on life insurance or contact us for life insurance advice.
Contact our team today for a free consultation to find out more on pension assurance.