Massive Tax Relief Savings To Be Made On Life Insurance Premiums, Advises Moneynet

Consumers can save up to 40 per cent on monthly life insurance premiums with a Pension Term Assurance policy, according to online data comparison service Moneynet.

Under little known new rules which came into effect with the Government’s A-Day pension shake-up earlier this year, it’s now possible to take out a ‘pension’ life policy - without having to pay any pension contributions - and take advantage of big tax relief savings deducted at source.

“This presents an unmissable opportunity to make savings for many people, whether they already have life insurance running or not,” said Moneynet chief executive Richard Brown.

“If you are looking for a new policy now is an excellent time to apply, and for those with existing life cover it may be possible to rearrange cover at a cheaper price under these new rules*,” said Brown. “However, there are some restrictions which apply, particularly for higher earners, so we would recommend that consumers receive advice from an appropriately qualified professional who can search the market, compare prices and advise on suitability.”

Policies set up under these new rules qualify for tax relief at the policyholder’s highest rate of tax. In practice, this means that 22% is deducted from the premiums paid, with higher rate taxpayers being eligible for an additional 18% through their annual tax return.

* Anyone considering switching policies should take professional advice to compare the benefits of the new policy offered with those of the existing policy. Current policies should not be cancelled until a new policy has been accepted by the insurance company and the new policy is in full force.

Editor's notes
Moneynet.co.uk is the UK’s longest established online personal finance research and data analysts. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.

For Consumer enquiries phone 0208 460 2833 or visit Moneynet financial comparison

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Chief Executive, Moneynet
020 8313 9030

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