Pension Term Assurance is receiving a lot of coverage at the moment, given that since A-Day (April 6th), it is now a lot easier and cheaper to buy your life insurance within a pension scheme (although some people may think it is a new product, it has existed for a while).
The premiums you pay are in effect lower as they are partly paid for by tax relief.
Many providers and insurance brokers are trying to encourage people to try out new quotations for their life cover, as it may reduce their premiums, but there are a few things to consider before changing your current policy. There are certain factors that will exclude you from being able to replace your policy with pension term assurance:
- If you’ve got a joint policy with your partner
- If your policy includes any form of critical illness insurance
- If the term of your plan takes you past your 75th birthday
Having said that, it may still be worth doing the research as to whether cancelling your current policy and starting a new one is worthwhile. Shop around to find the best pension term quote, but ensure that the cover you are getting with your new policy is as good as you get currently, and meets your needs.
As ever though, do remember not to cancel an existing life insurance policy until your new one is in force.
I’ve put together a site which explains the basic facts about pension term assurance, which you might like to read.