Summary

At last many of us can qualify for tax relief on a new life insurance policy. That's great, especially if you're a higher rate taxpayer! This article explains.

Life Insurance. 50% of new life insurance policies sold qualify for tax relief. Page 2

Author: Michael Challiner

If you're a higher rate taxpayer, you'll get the standard rate of tax deducted

By now you will have begun to appreciate why we believe that you must get advice before you buy one of these tax relief policies. If you aren't already convinced, consider the some more elements which the Chancellor of the Exchequer threw in!

You cannot have a Pensions Life Policy if your pensions contributions plus your life insurance premiums are greater than £215,000 per year. That shouldn't worry too many people!

Then you have to factor in that if the value of your pension fund plus the payout from the policy exceeds £1,500,000, then you will be taxed at 55% on the excess! (Conventional life insurance policies are excluded from this calculation.) Again this restriction shouldn't concern too many people - but you have to be aware of it.

So in summary, the information we are receiving indicates that around 50% of people will find that Pensions Life Insurance is the cheapest solution for their life insurance needs.

But, we repeat, do not buy it without expert advice.

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