Saturday, July 29, 2006
Life Insurance News
Thursday, May 18, 2006
Life Insurance Tax Relief
Scottish Provident - pension term assurance
Norwich Union - Pension life Insurance
Changing your life insurance policy
A good broker should be able to achieve savings of around 22% on your current premium if you are a basic rate taxpayer and savings of 40% if you are a higher rate taxpayer.
To get a quote goto: www.firstlifeoptions.com and fill in the short enquiry form. A qualified broker will call you back to discuss your requirements and send you a quote pack.
Saturday, May 06, 2006
Wednesday, April 19, 2006
Life Insurance Tax Relief - The new policy offerings
Here's a quick rundown on the different policies that are on offer.
Legal & General: One of the first companies to release their offering. Their policy can be written on a single life basis only and includes wavier of premium as standard.
Friends Provident: Single life basis only and is similar to L&G but with no standard wavier.
Liverpool Victoria: One of the only companies to allow existing clients to transfer over the the new product without penalty. They are the only company so far offering joint PTA policies.
There are a number of other providers that are bringing out new products over the next few weeks so check back regularly for more updates.
Wednesday, April 12, 2006
Pension Term Assurance
For a lot of people this will be a good oppertunity to revistit your life insurance policy - especially if you took out a policy a few years ago or if you bought it from a high street bank or broker (they are nearly always very expensive). With the new life insurance tax breaks now in place premiums cpould be reduced drastically for a number of people.
To get a personal quote, Advice and a discounted rate give First Life Options a ring on 0800 288 9757.
Tuesday, April 11, 2006
First Life Domain Names List
There are a lot of new changes that are happening within the life insurance and pension industry and we hope to bring you all the information you need to help you make the most of your financial situation. The sites listed below are currently just at the development stage but check back regularly for updates.
Friday, April 07, 2006
PENSION TERM ASSURANCE FACTS
PENSION TERM ASSURANCE – THE FACTS
What is Pension Term Assurance?
New rules that came into force on April 6th 2006 will allow most people to claim tax relief on their life insurance premiums. This is allowed even if you don’t have a pension. The rules will apply to new policies only. Current policies will be excluded.
So what is tax relief life cover?
It is a term life insurance policy that is set up under a pension scheme agreement so that your monthly premiums can benefit from tax relief.
Who can take out the plan?
Anyone aged 18 or over who is both resident and ‘ordinarily resident’ in the UK for tax purposes.
There are a number of factors to consider when thinking about taking out pension life insurance:
Basically the insurance company will claim any basic rate tax relief that you’re entitled to from HM revenue and Customs and will add it to your payments. For example, if the cost of your cover is £10 per month, you will pay just £7.80 a month at current basic tax rates. If you are a higher rate taxpayer, you can claim extra tax relief through your tax return. Please remember that the value of your tax relief depends on your circumstances.
The tax year runs from 6 April in one year to 5 April in the next year.
If the total of your and your employer’s payments to ALL registered pension schemes exceeds the annual allowance for that tax year (£215,000 in 2006/2007), you must pay a 40% tax charge. From the 6 April 2006 there is a lifetime allowance in force which limits the value of benefits you can receive free of income tax from all the pension arrangements you have, including any life policies of this type. Any amount above the lifetime allowance is subject to a tax charge of 55% if paid as a lump sum.
Advantages• Tax relief is given at person’s highest rate of tax.
Disadvantages• Uses up a proportion of persons tax allowance for personal pension planning. This is an issue for those able to make maximum contributions. • If an individual (the life assured) converts to ‘normal’ term assurance, some product providers will need new medical evidence and the premiums to be based on the age at conversion. This can make the new term policy more expensive than expected.
Points of Interest• Remember that using tax relief for term assurance, means that it is not available for investment pension planning. This is an issue for those who are able to invest large amounts into their pension. • If a life assured is likely to change employment status (e.g. move from being self-employed to employed), providers who offer conversion to ordinary term assurance without underwriting and a change in premium should be considered • If a person becomes ineligible to contribute, the policy will have to be cancelled and a new term assurance policy issued at rates applicable at the time of ‘conversion’. • Personal Pension Term Assurance brings into play the earnings cap - if Retirement Annuity Payments are being made.
• It is essential that professional advice is taken to ensure that all the options are explored. The information given above is not an exhaustive list and there may be other points to consider. At First Life Options we offer a full advisory service to help you make the most of the new term assurance tax relief rules. Call us today for a free consultation.