If you have a medical condition, we can help - call us at Have a medical condition? Call us: 057 93 20836

Pension Term Assurance | The cheapest form of life insurance

August 2 2017 4 min read Life Insurance

save 40% on life insurance

Can I let you in on a little secret?

You can get a refund of 40% of your life insurance premiums.

How?

By using on a special type of life insurance called pension term assurance.

I know, pensionszzzzzz right, but bear with me:

Only a select few clever people (who can afford tax advisors) take advantage of this.

Why?

Because they keep it a secret from the rest of us.

Pension term assurance is just like normal life insurance but you can claim tax relief on 40% of your premiums.

Where’s the catch?

You can only buy pension term assurance if you’re

  • self employed

or

  • normally employed but not part of a pension scheme at work.

And you can’t use your policy as security for a mortgage.

But apart from that it’s the exact same as a normal life insurance policy.

Tax relief on life insurance

The major attraction of pension term assurance is that you can get a refund on your premiums at the end of the year.

So, if you’re eligible, it will cost you 40% less than a regular life insurance policy

In real terms, a €100 per month premium could cost you just €60 per month

Example:

Tom runs his own business and pays tax on his earnings at 40%.

He’s self-employed so qualifies for pension term assurance.

He can get 40% tax back on his monthly premiums.

So, Tom’s €100 monthly premium actually only costs him €60 after claiming the tax back.

Not too shabby is it?

It’s the most cost-effective way to arrange life insurance.

But as usual, only those in the know take advantage of it.

Isn’t it time you did the same?

Here are some of the most frequently asked questions…

What if you take out a policy but your circumstances change and you no longer qualify?

For example, you take out the policy as self employed person but change jobs and become a PAYE employee.

With some insurers, you can exercise a conversion option so your cover continues but you lose the tax relief.

With all the other insurers, your policy ends.

Can you increase your cover in the future without giving medical evidence?

One of my insurers offer an automatic 20% increase in cover every 3 years. The other insurers don’t.

Can you convert it to a whole of life plan?

With Friends First yes, with the others, no.

Do you pay tax on life insurance payouts?

The life insurance company will make the payout as a tax free lump sum.

If the person receiving this money is a spouse, then no tax is payable.

Other beneficiaries depending on their relationship to the deceased may have to pay tax according.

The tax treatment of life insurance payouts is identical for pension term life insurance and normal term life insurance.

Got questions?

If you’d like some help arranging your cover or you’re wondering whether you qualify, give me a shout.

Give me a quick outline using the form below or call me on 05793 20836

Nick McGowan
lion.ie | making life insurance easier

life_insurance_schedule_a _call

Life Insurance
Give us a quick outline of how we can help and we'll be right back to you.

What Is An Income Protection Deferred Period?

The income protection deferred period is important.

Shorter deferred periods mean a higher premium.

But is a longer deferred period a waste of money?
August 1 2017 4 min read Life Insurance

Don’t know where to start?

Have a nose through our free guides

View our guides

Life Insurance Quotes - Free and Easy!

We’re an online life insurance broker. We compare life insurance quotes for mortgage protection, life insurance, specified illness cover and income protection from all 6 leading life insurance companies in Ireland, instantly and anonymously.

Watch our video