Pension Life Cover

B

bigbustour

Registered User
Messages
37
Hi There,
In relation to pension life cover can someone clarify if on payout\claim does the money go to the pension fund or to the deceased's estate outside of the pension. I'm curious about the implications from a taxation perspective on a drawdown of the payout if it's in the pension
Thanks
 
On an Occupational Pension Scheme, any death in service payout is added to the value of the pension fund. From this combined figure, a tax-free lump sum of up to four times' salary can be paid. Any excess must be used to provide dependents' pensions.

Personal Pension life cover is paid as a tax-free lump sum.
 
One more question, is the premium you pay for pension term assurance higher or is it the same as paying for it outside a pension. I'm not talking about after tax relief just the basic gross cost
 
Most companies keep their rates almost the same for pension term assurance and "ordinary" term assurance.
 
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