Personal Pension Term Assurance
Personal Pension Term Assurance provides a lump sum amount for your family in the event of your death before you reach retirement. You can put a financial safety net in place so that if you are not around to provide for your family anymore, you have still taken care of them financially. You will also benefit from tax relief on the premiums paid.
What is Personal Pension Term Assurance?
Pension Term Assurance gives you the benefit of having life cover in place whilst availing of tax relief on the premiums you pay. Under current legislation, tax relief is available at the rate of income tax you pay, just like personal pensions. If you die before retirement, the lump sum amount can help your family survive without having your income to rely on. The cover lasts until you reach retirement age, which will normally be your 65th birthday (but it may be earlier/later) subject to Revenue terms & conditions.
Is Personal Pension Term Assurance for me?
If you are:
- Self employed and your income is assessed for Income Tax under Schedule D; or
- In paid employment but not included in your employer’s company pension plan, this plan is suitable for you.
You have to be resident in Ireland, over the ages of 18 and can only take out life cover on your own life.
What are the tax advantages?
A key benefit of Personal Pension Term Assurance is that you can claim tax relief on the premiums you pay for the life cover. There is a limit on the % of net relevant earnings that qualify for tax relief depending on your age. Tax relief is not automatically granted; you must apply to and satisfy the Revenue requirements.
Can I convert my Pension Term Assurance to a Term Assurance?
If you have chosen a conversion when taken out your policy you will have the option to convert your plan into term protection policy, for up to the same lump sum amount depending on the terms and conditions of your policy. You do not need to provide medical evidence when you exercise this option before the end of the term of your policy. You should speak to your adviser to make sure you fully understand the terms of the plan and up until what age you can convert the policy into a term plan.
What if I stop paying my premiums?
If you stop paying your premiums, your cover and benefits will also stop. You can apply to reinstate the policy however this may be subject to medical evidence and a new application.
*Revenue terms and conditions apply. It is important to note that tax relief is not automatically granted. You must apply to and satisfy Revenue requirements.
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