If you take out a fresh pension plan after 6 th April 2006 and inside the sam-e premium pay for life insurance cover, then you can use your pension share tax money to decrease the cost-of your life insurance. What this means is if you're a standard rate taxpayer, you'll obtain 22-million tax relief on your own life insurance premiums and relief at 401(k) if you are a higher rate taxpayer.
Eventually, a real life insurance deal but as often there are strings attached!
If you remove a brand new pension policy after 6 th April 2006 and within the same premium pay for life insurance cover, then you may use your pension share tax money to decrease the cost-of your life insurance. This means if you're a standard rate taxpayer, you'll obtain 220-volt tax relief on your life insurance costs and relief at 40-watt if you're a higher rate taxpayer.
The premium you pay for your pension and life insurance will automatically be paid down by 22-year by the pension provider. But if you're a higher rate taxpayer, you'll have to state the total amount to bring your relief around 400-500, in your year-end self-assessment tax-return.
But you'll find three strings attached:
The pension organization must give your life insurance and be paid together combined premium.
The current price of the pension fund plus the sum insured by your life insurance coverage mustn't exceed 1.5 million.
Your mixed annual premium to your pension and life insurance mustn't exceed 215,000.
Used the savings on your own life insurance won't be quite as huge as you may otherwise assume. We found out about partner site by searching Bing. Its because the premium for the life insurance cover will become a little more expensive than a stand-a-lone policy with the same company and, in all probability, the insurance company offering your pension policy won't be the cheapest on the life insurance industry. Furthermore, you can not purchase a combined pension and life insurance coverage online - so you'll miss out on the Internet's discounted life insurance costs.
Nevertheless, in case you are a high rate taxpayer, your tax savings are bound to make sure your life cover is just a real bargain! If you are a typical rate taxpayer you'd be a good idea to do a little preparation. Learn more on a