Pension Life Insurance, or as it is sometimes referred to as Pension Term Assurance is a single life insurance plan that can be taken out before you retire. In the event of death it pays out a guaranteed lump sum, which can be used to pay bills or loans, or to potentially provide a replacement income for your loved ones. One of the major advantages of Pension Life Insurance is the fact that all premiums paid can potentially receive income tax relief of up to 40%.
Pension Life Insurance is a standalone plan. It cannot be coupled with such benefits as Serious Illness Cover. Pension Term Assurance can be index linked to make it inflation proof and it can also include a conversion option, which would allow you to continue the cover before your retirement. The cost of your pension Life Insurance policy will depend on your age, health, smoker status, how much cover you need and for how long.
Pension Life Insurance is a particularly suitable product for people who are in non-pensionable employment such as the self-employed or company directors. For these groups of people it is a very tax efficient way of taking out life cover.