PENSIONS PERSONAL PENSION TERM ASSURANCE

PENSIONS PERSONAL PENSION TERM ASSURANCE

PERSONAL PENSION TERM ASSURANCE At a glance Personal Pension Term Assurance To provide life cover for your family in the event of your untimely death. Tax relief on contributions. The cost won t change (unless you choose an increasing cover option). Provides a lump sum payment to your family, if you die before retirement. LifeCover can last until retirement. What is Personal Pension Term Assurance? Personal Pension Term Assurance is a protection policy designed to provide your family with the security of a lump sum payment, if you should happen to die before retirement. If you died before retiring, your family s income would be drastically reduced, however the household bills would still continue to land on your doorstep. A Personal Pension Term Assurance plan could supplement any income, earnings or savings that they may have, at a time when they need it most. 1

What are the benefits of Personal Pension Term Assurance? It s affordable life cover. You can claim tax relief on your contributions. Your family/estate receives a cash lump sum if you die before retirement. It provides financial security for your family and peace of mind for you. Who is eligible? A self-employed person with income assessable for Income Tax under schedule D or: A person in paid employment but not included by his or her employer in a company pension plan. You must also be: Resident in Ireland and Aged between 18 and 65 years. It s important to note that it is only available on a single life basis (you can only take out cover on your own life). What are the tax saving advantages? If you are eligible to take out a Personal Pension Term Assurance plan, you can claim tax relief on your contributions of up to 40% of your net relevant earnings in any one year, depending on your age. The same limits also apply for all contributions you make to any Personal Pension plans and Personal Retirement Savings Accounts (PRSAs) you may have. Your net relevant earnings consist of your earned income during a tax year, less certain allowances, losses, deductions and charges. The maximum contribution amount that you can claim tax relief on will depend on your age, as set out in the table below. Age % of Net Relevant Earnings Age % of Net Relevant Earnings that you can obtain tax relief on that you can obtain tax relief on Up to 30 15% 50 to 54 30% 30 to 39 20% 54 to 59 35% 40 to 49 25% 60 and over 40% There is a limit of 150,000 on the amount of earnings, which can be taken into account for the purpose of tax relief on pension contributions and pension term assurance contributions in 2009. Subject to Revenue limits and conditions. 2

How do I claim tax relief on my contributions? It is important to note that tax relief is not automatically guaranteed, you must apply to and satisfy the Revenue requirements. For more information on how to claim tax relief, please contact your Broker or Financial Advisor. How does this work? Pension Term Assurance Contribution of E100 per month Tax relief of E41* Cost to you E59 *Assuming you are a higher rate tax payer. Male, age 65, non-smoker, level cover of 693,031. Pension Term Assurance offers great value for money. In the illustration above, a contribution of 100 per month could provide Life Cover of over 693,000 over 25 years. What types of cover are available? There are three types of life cover available: Level Cover, Increasing Cover and Convertible Cover. Level Cover With this type of cover, contributions remain the same throughout the term of the plan, as does the lump sum paid out if you die during the term. Increasing Cover This option automatically increases the level of life cover as well as contributions by 5% each year, to help protect against inflation and to maintain the real value of your benefits. Convertible Cover This option enables you to convert your policy into a comparable non-unit linked policy, for the same sum assured, without the need for you to provide further medical evidence at any time before the end of the term. Convertible Cover is available with either Level Cover or Increasing Cover Options. What should you do now? There s no time like the present to start planning for your family s financial future. We know it s one of the most important decisions you are likely to make, that s why we recommend you meet with a Broker or qualified Financial Adviser, to help figure out the right level of protection for you. So, why not make an appointment with your Independent Broker, New Ireland Financial Adviser or call us on 1890 405 905 today and take that next step to financially protect your family s future. 3

PERSONAL PENSION TERM ASSURANCE Your questions answered... Can I use this Life Cover as security for a loan or mortgage? No, this type of life cover cannot be used as security for a loan or mortgage. Your Broker or New Ireland Financial Adviser will be able to advise you on a suitable protection option if you want a life cover policy that can be used as security for a loan/mortgage. How long does the cover last for? Provided that you continue to pay the contributions, Personal Pension Term Assurance normally continues until you reach the retirement age under the plan. Normally, this will be your 65th birthday but may be earlier subject to Revenue conditions. Can I cancel my plan? If you decide after taking out this plan that it is not right for you, then you can cancel it within 30 days by sending a request in writing to: New Ireland Assurance Company plc, 9-12 Dawson Street, Dublin 2. Will I receive any money when my plan expires? No, the full value of contributions is used to provide you with life cover during the term of your plan. This helps to ensure that the cost of your life cover is as low as possible. At no point during the term will the plan have a cash value. What happens when my plan expires? When the term of your plan comes to an end (or if contributions cease to be paid), your life cover will automatically stop and your plan will end. If you chose the conversion option, you may decide to take out a comparable, non unit-linked policy before the original plan ends. The new policy will commence when you exercise this option and will replace the original plan. What happens if payments to the Plan are stopped? If payments into the plan are stopped, your cover will end and you will not receive any refund or benefit from the plan. Will any inheritance tax have to be paid on the benefits of the Plan? Normal inheritance tax rules apply. If the lump sum is paid to your spouse there is no tax payable but if the lump sum goes to anyone else there may be a liability to inheritance tax. Your Broker or New Ireland Financial Adviser will be able to advise you on whether tax is applicable in your situation. 4

Terms and conditions apply. Life Cover benefits are subject to underwriting and acceptance by New Ireland. This brochure is based on our understanding of current legislation and Revenue practice as at January 2009. While great care has been taken in its preparation, this brochure is of a general nature and should not be relied on in relation to a specific issue without taking financial, insurance or other professional advice. If any conflict arises between this brochure and the Policy Conditions, the Policy Conditions will apply. Revenue limits, terms and conditions apply. Tax relief is not automatically guaranteed, you must apply to and satisfy the revenue requirements. New Ireland Assurance Company plc. 11-12 Dawson Street, Dublin 2. T: (01) 617 2000 F: (01) 617 2800. E: info@newireland.ie W: www.newireland.ie New Ireland Assurance Company plc is regulated by the Financial Regulator. A member of Bank of Ireland Group. 301364 V1.03.09