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Tax Relief available on around 50% of new life insurance policies. Page 2If you're a higher rate taxpayer, standard rate tax will be deducted from your premiums by the insurance company - but the difference between standard and your higher rate tax will have to be claimed via your Annual Tax Return. ( life assurance ) You won't have to do this every year, as we understand that once you've entered this on an Annual Tax Return, the Inland Revenue will continue to award the tax relief until the end of the policy. By now you will have begun to appreciate why you must get advice from Moneyquest before you buy a pension Life Insurance policy. Well, if you aren't already convinced, there are some more considerations which the Chancellor of the Exchequer threw in! You can't have a Pensions Life Insurance policy if your pensions contributions plus your life insurance premiums add up to more than £215,000 per year. { life assurance } The odds are, that won't worry you too much! Then you have to consider the fact that if the value of your pension fund plus the payout value from the Pensions Life policy exceeds £1,500,000, then you'll be taxed at 55% on the excess! (cheap Life Insurance policies are excluded from this particular calculation.) Again this restriction isn't likely to concern you - but you need to be aware of it. So in summary, the information we are receiving indicates that around 50% of policy buying life insurance will find that Pensions Life Insurance is the cheapest solution for their life insurance requirements. But, we repeat, do not buy it without expert advice from Moneyquest.
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