Life Cover: amount limited by revenue?

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bacchus

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Somebody mentionned to me that there is a limit (set by the revenue) as to how much life cover can one (a PAYE) subscribed to, and that this limit is based on gross salary.

Would anybody know more about this?

Note: Revenue web seems to be down at the moment.
 
Unless you are talking about Death In Service Benefit in conjunction with a pension Scheme, I can't recall the Revenue putting a 'limit' on the amount of cover that you can have.

If you look to insure yourself for a very substantial amount, the insurer may require some financial underwriting. They may have reservations about insuring someone for €20m that is unemployed (extreme example).
 
No revenue restriction applies.

As F. Kruger alluded to above the maximum lump sum payable from an occupational pension scheme on a death in service is 4 x salary.
 
As F. Kruger alluded to above the maximum lump sum payable from an occupational pension scheme on a death in service is 4 x salary.
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This is from a tax perspective, it can be any multiple, the revenue will restrict to 4X and you will be taxed on remainder
 
slave1 said:
This is from a tax perspective, it can be any multiple, the revenue will restrict to 4X and you will be taxed on remainder
Click to expand...

No that is incorrect.

Many schemes insure for more than 4 x salary, but any payment above this amount must be made by way of widows/childrens pensions, i.e. it must be used to purchase an annuity.

Insuring a single person for anything over 4 x salary will mean the scheme would benefit in the event of a death in service claim.
 
aha gotya, 4X for lump sum and remainder to "non-lump sum", mmm must check out my beneifts in case I depart this wonderful life while still in this place I call work
 
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