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Life insurance

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  • 07-09-2011 1:53pm
    #1
    Tim Robbins
    Registered Users Posts: 8,991 ✭✭✭


    Hi,
    I was just wondering is there anyone out there working for a company which did not provide life insurance? Did you take out your own? How did you do it and how much does it cost?

    Thanks.


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    #2
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    I presume you are reffering to a 'Death in service benefit' as part of your employment. Thats a benefit of your employment and an employer is not obliged to offer it.

    To take out a personal policy simply approach a broker/financial advisor and they will be able to offer you quotes for a new policy. You will have to complete a proposal form which will include some medical questions and depending on your age and level of cover your GP may have to compete a medical report or you may have to complete a medical (at the life companies expense),

    Contact http://www.piba.ie/ and they will put you in touch with someone local to you who can quote you.


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    #3
    Tim Robbins
    Registered Users Posts: 8,991 ✭✭✭Tim Robbins


    Pablo Sanchez wrote: »
    I presume you are reffering to a 'Death in service benefit' as part of your employment. Thats a benefit of your employment and an employer is not obliged to offer it.

    To take out a personal policy simply approach a broker/financial advisor and they will be able to offer you quotes for a new policy. You will have to complete a proposal form which will include some medical questions and depending on your age and level of cover your GP may have to compete a medical report or you may have to complete a medical (at the life companies expense),

    Contact http://www.piba.ie/ and they will put you in touch with someone local to you who can quote you.
    Oh thanks.

    Do you know if it is tax deductable?


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    #4
    Kennie1
    Registered Users Posts: 302 ✭✭Kennie1


    You can take out "Pension Term Assurance" which is tax deductable. If you are in a DC scheme you can take out up to 4 times salary and off set the premiums against your income tax.

    If you are not in a employer DC scheme you can take out any amount of life cover and get tax relief on the premiums up to certain % of your income depending on your age. Just contact your financial advisor and they will be glad to talk it over with you.


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    #5
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    Kennie1 wrote: »
    you can take out any amount of life cover and get tax relief on the premiums up to certain % of your income depending on your age. Just contact your financial advisor and they will be glad to talk it over with you.

    There is no tax relief on the premiums you pay for life assurance, it was withdrawn a long time ago.


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    #6
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    coylemj wrote: »
    There is no tax relief on the premiums you pay for life assurance, it was withdrawn a long time ago.

    Tax relief is available for self employed term assurance, but im not sure what Kennie was talking about.


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    #7
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    Pension Term Assurance

    Pension Term Assurance is also known as Pension Life Cover and Self Employed Term Assurance, although this does not mean that it is exclusively available to self-employed persons. This is basically a level or convertible term life assurance plan that someone can take out up to their chosen retirement age (up to age 75 with some companies), and the premiums payable are eligible to receive income tax relief at the marginal rate for the self-employed and corporation tax relief if paid via a company. You can add the indexation and conversion options into this plan.
    The only potential drawbacks to this type of policy is that is cannot be assigned to anyone and can’t be taken out under joint life. You will not be able to use this policy as cover for a loan with a lender.


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    #8
    Kennie1
    Registered Users Posts: 302 ✭✭Kennie1


    Pablo Sanchez wrote: »
    Tax relief is available for self employed term assurance, but im not sure what Kennie was talking about.
    Same as you Pablo, perhaps I was not clear enough;)


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    #9
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    The OP is clearly an employee so I really don't understand the motive for you guys quoting the tax relief that's available for the self-employed.


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    #10
    Kennie1
    Registered Users Posts: 302 ✭✭Kennie1


    Just to be crystal clear.
    An employee who is not a member of a DC/DB scheme or a self employed person can take out a Section 785 term assurance policy and can offset the premiums against their taxable relevant earnings up to certain limits based on their age, there is no limit to the amount of cover that a person take out. Simple explanation of this is, you can take out a life assurance policy and get tax relief on the premiums. The only other limits are that you cannot assign the policy against a loan as per pablo's post.


    For an employee who's a member of a DC/DB scheme, that employee has "death in service benefits" this is different to a certain degree as in this case the employer owns the policy and therefore if the employee leaves service he/she cannot take the cover with them. Most schemes usually cover up to 1.5 salary, however the max cover an employee can have in this case is 4 times salary. This gives the employee an opportunity to take out a policy to cover the shortfall and get tax relief on the premiums.


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    #11
    broker2008
    Registered Users Posts: 750 ✭✭✭broker2008


    Pablo Sanchez wrote: »
    Pension Term Assurance

    The only potential drawbacks to this type of policy is that is cannot be assigned to anyone and can’t be taken out under joint life. You will not be able to use this policy as cover for a loan with a lender.

    In the Celtic Tiger years it was ! ;) or :eek:


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