After only a week since A-Day clients of money4dentists have insured themselves for well over ?8 million of Pension Term Assurance and the partners Richard T Lishman and Thomas Dickson are delighted that their higher rate tax paying clients are now saving 40% on their premiums.Most people taking out life assurance have traditionally chosen basic term assurance. However, important changes to pension rules that were introduced on 6th April 2006 (A-Day), mean that it?s much easier to take out Pension Term Assurance (PTA) (also known as Life Protection with Tax Relief). This scheme enables basic rate taxpayers to obtain 22% tax relief on their premiums and higher rate taxpayers 40% relief.
The premiums for Pension Term Assurance are slightly higher than for standard term assurance, but the 40% relief often makes PTA the more affordable option. Those who already have individual life cover are likely to find that they can reduce their premiums by switching to a new policy.
money4dentists believes it is worth everyone reviewing their life assurance, as they may find they qualify for full tax relief on premiums arranged under the new rules which would reduce the cost by up to 40%. However, this won?t apply to everybody; the legislation is new and complex, so be sure to seek professional advice.
For further information call money4dentists? call 0845 345 5060 or visit www.money4dentists.com