Summary
You can now buy life insurance cover and get tax relief on your premiums. But you have to buy a special policy. This article provides the details.
Life Insurance available with tax relief.
Author: Michael Challiner
At last you can buy life insurance and get tax relief. The breakthrough
- Life Insurance Without Life Value Why Young People Are Snubbing Financial Advice
- An interesting article dealing with the lack of awareness in the young about their personal financial situation.
- Life Insurance. Why does less than half the UK population have cover?
- There are still lots of families without life insurance cover. This article investigates the reasons.
- Life and Critical Illness Insurance Tell the insurers everything when you apply.
- Non-disclosure of relevant information is the single largest reason for the rejection of a life or critical illness insurance claim. This true story points up the complications.
- Life Insurance. How the new regulations affect policies written in trust.
- The 2006 Spring Budget changed the treatment of some life policies written in trust. This article explains the tax position unveiled by the Finance Bill.
- Critical Illness Insurance. Are your children insured?
- Ensure that your critical illness policy automatically covers your children. This article explains why it's so important.
- Save Thousands on your Life Insurance.
- Smoking is the bane of many our lives. Giving up not only helps you live a longer, healthier lifestyle - it can also save you thousands on life insurance.
These new policies exploit a loophole in the new Finance Bill and should result in savings of ( travel insurance ) between 5% and 15% for standard taxpayers and around 30% for higher taxpayers.
But there are strings attached! You can't add extras on to your life policy such as critical illness cover and the insured sum must be a fixed sum. Neither can you have a joint policy. ( best mortgages ) Basically, it has to be a bog standard, level term, single beneficiary, life insurance policy.
Then there are more restrictions, but quite honestly, these are unlikely to pose a problem to anyone unless they're very wealthy! You can't have one of these special life policies if the annual contributions you pay into your pension plus the life insurance premiums, exceed £215,000 per year. ( pet insurance ) Furthermore, if the value of your pension fund plus the payout on your life policy exceeds £1,500,000, the current limit set by the Chancellor, then the excess will be taxed at 55%. Conventional life insurance policies are excluded from this calculation.