Can I let you in on a little secret?
You can get a refund of 40% of your life insurance premiums.
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.
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
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.
The major attraction of pension term assurance is that you can get a refund on your premiums at the end of the year.
In real terms, a €100 per month premium could cost you just €60 per month
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?
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.
One of my insurers offer an automatic 20% increase in cover every 3 years. The other insurers don’t.
With Friends First yes, with the others, no.
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.
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
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