Pension Term Assurance (PTA) – Part II

Yesterday, we concluded the article on Pension Term Assurance (PTA). Today, we’ll continue the PTA in more fine details this article.

Points to consider if you are switching to a PTA from a term assurance:

• Make sure you don't lose out by switching. Your current term assurance policy may include cover options which are not offered under the PTA policy you are considering.
• Remember that new PTA policies will not qualify for tax relief on the premium, and so will no longer have a tax advantage over ordinary term assurance policies.

Point to consider if you are switching to a term assurance from a PTA:

• Remember that PTA policies in force before 31 July 2007 will still get tax relief on the premiums. Switching to an ordinary term assurance will mean you lose this advantage.

Remember, if you are switching either way:

• Don't cancel your current policy until you are sure you have another policy in place - you could leave yourself uninsured.
If your health has deteriorated since taking out your existing policy, this may mean that the premiums for a new policy are more expensive and you might be better off not switching.

Previous article: Pension Term Assurance (PTA).

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