Pension Term Assurance
Pension Term Assurance provides life assurance cover and allowed tax relief to be claimed on the premium payments at the policyholder’s highest or marginal rate of tax. This changed in 2007.
Cover is no longer available for new customers, but those with existing policies can continue to have tax relief added to their premiums, thus reducing the cost of the insurance.
Relevant Life Policies
Alternative policies to PTA are called Relevant Life Policies which are taken out by an employer with the purpose of providing ‘death in service’ cover for employees. Cover is provided up to 4 x salary and is usually part of a registered group scheme.
Multiplans (also called Universal Life Plans) are comprised of a number of different types of cover within the same policy, eg level term assurance with income protection. They:
- Are designed to be flexible and responsive to the policyholder’s changing circumstances.
- Have lower charges and less overlap of cover
- Are more complex to set up