What is Pension Term Insurance?
Pension Term Insurance is a life insurance policy that covers you up until retirement. If you were to die before you reached retirement your family would receive a lump sum of money. It’s a way to take off any financial burdens at that time.
The money can be used by your loved ones to pay any bills, daily expenses, or rent. The lump sum of money will act as a replacement income for your family and provide them with financial security.
Personal Pension Term Insurance: It’s designed for self-employed individuals or employees who don’t have a pension.
Executive Pension Term Insurance: This type of insurance protects company executives and company directors.
How does it work?
You will pay a regular amount of money into your Pension Term Policy. Until the date you have chosen for retirement, your contributions will provide for the level of life cover needed. However, It’s important to know that, no payments will be made to your family if you live until the end of the policy.
This type of insurance can insure up to four times your salary. In addition, you can insure more if you’re willing to pay more. Indeed, there is no limit for personal pension term insurance.
BENEFITS of pension term Insurance?
- You can receive income tax relief up to 40%.
- Your payment won’t increase unless you choose the indexation option.
- Ideal for self-employed individuals who want to protect their family while running their business.
- Usually cheaper than a life insurance plan.
- Can’t be used as Mortgage Protection
- Can’t be combined with Serious Illness cover
- The amount of income tax you can claim depends on whether you are eligible
- The cost depends on your age, health, smoker status, how much cover you need, and for how long.
- You can’t take them out as Joint policies, with a partner. It’s a single-life plan.
- You can only take them out until you’re 75
How can we help you?
Our qualified financial advisors will find the best pension term insurance policy for you. Also, we will help you calculate your contributions base on your budget and your income. Additionally, Greenway works with Top Irish insurance providers to give you the best options available.
We provide our advice for free, so you won’t have to pay any fees to us. Click here to get in touch with a financial advisor.
Greenway Financial Advisors Limited is regulated by the Central Bank of Ireland. Registered No. C168372