Is pension term assurance - what?

Stand alone pension term assurance (PTA) is term the rules used to provide cover for pensions, to life. You must pay any pension contributions, and you can only take life insurance cover. But after an announcement of the Chancellor in December 2006, you can not tax relief on the premiums numbers on new stand-alone PTA policies get.

Removed existing PTA policies ahead of the announcement are not affected and will continue to tax relief on the premiums to enjoy.

Stand alone PTA pays on your death. It gives you an income in retirement. PTA will be called to necessarily not pension term assurance, you can understand to read their own marketing names for it, so you make sure the policy documentation safely company what you buy.

Tax relief

Given the possible change in the tax rules, PTA may stand alone no longer a tax advantage to ordinary term insurance products. So, if you consider PTA, should you at ordinary term assurance also in deciding which product is best and meets your requirements best.

Points to consider when you switch a PTA of a term assurance are:

Exhibit sure that you don't lose by switching. Her current term assurance policy can contain options coverage provided under the directive of PTA, you take into consideration. Keep in mind that new PTA policy not for tax relief on the premium, so qualify policy may no longer can a tax advantage over ordinary term assurance.
Point to examine when you switch to a concept of assurance of a PTA are:

Keep in mind that PTA policy applicable before the tax shift announced in December 2006 still tax relief on the premiums of wars. Change to ordinary term assurance can mean that you lose this advantage.

Keep in mind when you go in any case:

No cancel your existing policy, until you sure have a different policy in place – you could let not insured are. If your health has deteriorated since your existing policy take out, this can mean that the premiums for a new politics are more expensive and not go better.

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