Should Life Assurance be taken out through your pension?

Hi,

I am looking to take out life assurance and I am trying to establish the cheapest way of doing so.

I am in a DB pension scheme and I also contribute to an AVC scheme. My AVC scheme will allow me to increase my death-in-service benefit from 1.5 times my salary up to the revenue limit of 4 times my salary (tax free lump sum). There appears to be a tax advantage in taking out this cover through the AVC scheme.

Would I be better off taking out the extra life cover through the AVC scheme or obtaining the same cover through a separate policy?

Any advice would be greately appreciated.

Thanks,
Auburn

You need specialist advise.

4 x salary is not the max. dis amount btw. It is the max. that can be paid out in a lump sum. It's possible to insure much higher multiples to provide for partners/childrens dis pensions.

We took out a pension term assurance a few weeks ago seperate to our pension as we may be changing our pension in future years and it would cost more on the life assurance end as we would be getting older each year. It is treated the same as a pension with regards to tax relief. Pension Term Assurance cannot be assigned to loans etc which suited us as it is protection for the family we were after.

Tax relief is attractive certainly.

There are important differences between self employed term (S.235a) and a D.I.S. scheme.

Professional advice really is needed.

I spoke to a guy yesterday from la brokers he said that there was a discount insurance forum on aam but i cannot find it. any one know where this is.

LA Brokers and 123.ie both offer discounts. They won't offer full advice though.

Getting a discount on the wrong policy won't make it a right one.