Mortgage Industry News

← Back

Pension Term Life Assurance explained by Endsleigh Financial

Pension Term Assurance (PTA) - Essentially PTA is a life assurance policy which allows tax breaks so you can get sound financial protection and also receive up to 40% tax relief.

Following April 1st, demand for pension term assurance products is rising because contribution restrictions were lifted on 'A Day' (April 1st 2006).

Pension term assurance can be arranged as either a level or a decreasing term life assurance contract allowing tax relief to be claimed on premiums at your highest marginal rate. This basically means that if can arrange this cover then you may benefit from cheap insurance premiums in comparison to normal term assurance.

Premiums paid to purchase pension term assurance are considered as a part of your pension contribution limits. Until April 2006, only 10% of the pension contribution could be used towards pension term assurance, however after A-Day (5th April 2006) this limit was removed.

There is now no limit to the amount of pension term assurance that can be held by an individual pension fund. However, tax relief will only be given if the pension and term contributions total are below the annual allowance (initially £215,000) or 100% of your earnings. If you are not working, you can make contributes of up to a maximum of £3600 per year.

If you still want more information on Pension Term Assurance, complete our quote form. We will contact you to discuss your pension term assurance requirements.

© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.