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  • Casual Articles - Life Insurance - Bargain Life Insurance When You Take Out A Pension Policy

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    But there ar

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    At last, a real life insurance bargain – but as always there are strings attached!

    If you take out a new pension policy after 6 th April 2006 and within the same premium pay for life insurance cover, then you can use your pension contribution tax allowance to reduce the cost of your life insurance. This means if you're a standard rate taxpayer, you'll receive 22% tax relief on your life insurance premiums and relief at 40% if you're a higher rate taxpayer.

    The combined premium you pay for your pension and life insurance will automatically be reduced by 22% by the pension provider. But if you're a higher rate taxpayer, you'll need to claim the balance to bring your relief up to 40%, on your year-end self-assessment tax return.

    But there are

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    ithin the same premium pay for life insurance cover, then you can use your pension contribution tax allowance to reduce the cost of your life insurance. This means if you're a standard rate taxpayer, you'll receive 22% tax relief on your life insurance premiums and relief at 40% if you're a higher rate taxpayer.

    The combined premium you pay for your pension and life insurance will automatically be reduced by 22% by the pension provider. But if you're a higher rate taxpayer, you'll need to claim the balance to bring your relief up to 40%, on your year-end self-assessment tax return.

    But there ar

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    This means if you're a standard rate taxpayer, you'll receive 22% tax relief on your life insurance premiums and relief at 40% if you're a higher rate taxpayer.

    The combined premium you pay for your pension and life insurance will automatically be reduced by 22% by the pension provider. But if you're a higher rate taxpayer, you'll need to claim the balance to bring your relief up to 40%, on your year-end self-assessment tax return.

    But there ar

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    payer.

    The combined premium you pay for your pension and life insurance will automatically be reduced by 22% by the pension provider. But if you're a higher rate taxpayer, you'll need to claim the balance to bring your relief up to 40%, on your year-end self-assessment tax return.

    But there ar

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    a higher rate taxpayer, you'll need to claim the balance to bring your relief up to 40%, on your year-end self-assessment tax return.

    But there are three strings attached:

    • The pension company must also provide your life insurance and be paid as one combined premium.

    • The current value of your pension fund plus the sum insured by your life insurance policy must not exceed ?1.5 million.

    • Your combined annual premium for your pension and life insurance must not exceed ?215,000.

    In practice the savings on your life insurance will not be quite as big as you might otherwise expect. Its because the underlying premium for the life insurance cover will be a bit more expensive than a stand-a-lone policy with the same company and, in

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