What is Pension Term Assurance?
Although Pension Term Assurance has been around since 1988, it is only since Pensions "A-Day", 6th April 2006, that it has really been made available to everyone.
Since A-Day, the rules have been relaxed to allow you to take out a pension term policy through an IFA, broker or directly with the life insurance companies themselves. Previous rules meant that the amount you could pay into a life policy within your pension was so small it was virtually pointless bothering about.
Despite the name, policies also do not have to be taken out from within a pension. Although the sum assured counts towards your Lifetime Allowance for your pension fund, your contributions are not building up a pension fund themselves - as with normal life insurance, the policy will pay out a lump sum in the event of your death - this could be in order to protect your family, or to pay off the remainder of your mortgage.
Who is elgible?
Pension Term Assurance is available for UK tax payers under the age of 75.
A.K.A.
Unfortunately, despite only being in the limelight for a few weeks, pension term assurance has also been named various things within the industry, which doesn't really help the consumer when they're searching for this particular type of life insurance. So you may see it referred to as:
- Pension Term Assurance
- Pension Life Insurance
- Life Insurance with Tax Relief
- Tax Deductible Life Cover