What is Pension Term Assurance?

Pension Term Assurance is a type of Term Assurance designed to provide Life Cover to those in non-pensionable employment. This includes for example, a self-employed person or someone who is not a member of an employer-sponsored Pension plan. A major attraction of a Pension Term Assurance Policy is that currently, if eligible, you may claim full tax relief, at your marginal tax rate, on all premiums paid into this policy. So, if eligible, this valuable security may cost you as much as 40% less than a regular Term Assurance policy.

For example, John owns his own business and currently pays tax on his earnings at the higher rate of income tax (40%). As he is self-employed, he is entitled to tax relief on his monthly Pension Term Assurance premium (currently €200 per month) at 40%. Therefore, Johns €200 monthly premium actually only costs him €120.