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Zurich taking insurance incase of non-payment, exactly the same amount as tax allowan

Lynda10_2
Posts: 3 Newbie
Hi Martin
I began my private pension with Allied Dunbar (transferred to Zurich) in 1989. Took a 4 year break and restarted it at least 10 years ago.
My query is that Zurich (and Allied) take out an insurance premium in case of non-payment each month which totals exactly the same amount as the tax free allowance. I've asked on several occasions if I can stop paying this insurance but they tell me that it is compulsory. Any suggestions?
Lynda
I began my private pension with Allied Dunbar (transferred to Zurich) in 1989. Took a 4 year break and restarted it at least 10 years ago.
My query is that Zurich (and Allied) take out an insurance premium in case of non-payment each month which totals exactly the same amount as the tax free allowance. I've asked on several occasions if I can stop paying this insurance but they tell me that it is compulsory. Any suggestions?
Lynda
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Comments
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Waiver of premium may be a compulsary element of their pension but its not a requirement for anyone else nowadays. You have an obsolete pension that is well past it's sell by date and its time you got it reviewed and brought upto date.
How much many things you bought in 1989 do you still use today? Not many I bet and pensions should be treated no differently and should be reviewed and replaced when better modern alternatives come about.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
My query is that Zurich (and Allied) take out an insurance premium in case of non-payment each month which totals exactly the same amount as the tax free allowance.
How blatant can you get? :mad:
Charges of 1% a year on a pension will already confiscate 25% of the fund over a 25 year period (thus eating up basic rate tax relief ) but putting another 22% on top is just outrageous.
They weren't known as "Allied Crowbar" for no reason.Trying to keep it simple...0 -
Thanks both. Yes must look into changing it. Will contact an independent pensions adviser next week. Can I claim it back I wonder?0
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Can I claim it back I wonder?
No. Its a valid cost for a product which provides protection. Old policies with this used to benefit from tax relief on the WOP which is no longer the case. I am sure you would have been grateful for the benefit had you claimed on it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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