pension help

fbtools

i have a pension life assurance policy with pearl, and have just received from them a letter stating a change in tax rules, as follows:-

With immediate effect, to ensure that pension life cover contributions remain eligible for tax relief, and can therefore continue to be paid, you must ensure that there is no break in payment. This means you must ensure that:
YOU DO NOT MISS A PAYMENT; AND PAYMENTS ARE ALWAYS MADE BYTHE DATE THEY ARE DUE.
IF EITHER OF THESE SITUATIONS OCCUR, IT WILL NOT BE POSSIBLE TO RESTART THOSE CONTRIBUTIONS AND, AS A RESULT, YOU WOULD LOSE VALUABLE LIFE ASSURANCE COVER.

firstly although in the 15 years i have been paying in this pension i have never missed or been late with a payment, i still have 15 years to pay and am now getting very stressed that through no fault of my own i,m going to be late with at least 1 payment over the next 15 years.

secondly does that mean i lose everything i have been paying over the last 15 years.
please help with this

dunstonh

Pension term assurance was abolished by the Govt but those those people that had a pension term assurance already (pre 2001 approx) can keep the benefit. However, if the policy is stopped in any way resulting in a missed premium it is not possible to reinstate it.

Pension term assurance has no monetary value unless you die.

Retired_I.F.A.

Read the bit under the heading lapsed policies : http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM05101245.htm

Bit of a contract wording problem methinks as you need to establish what is a lapsed policy. A policy will only lapse if x number of monthly premiums are unpaid and I think that x = 2

If x is just 1 then play safe and see if the Pearl will accept one extra monthly payment as a buffer. Should the D.D. not then be paid they can use it thus giving you a month to rectify a missed D.D. Cant see any reason why not as theres no law against paying effectively two months in advance instead of the normal one.

EdInvestor

Retired_I.F.A. wrote: »

If x is just 1 then play safe and see if the Pearl will accept one extra monthly payment as a buffer. Should the D.D. not then be paid they can use it thus giving you a month to rectify a missed D.D.

I must say this demonstrates a touching faith in the quality of insurance company admin systems not normally borne out by experience.It is after all over a year since pension term assutrance tax relief was withdrawn.

dunstonh

Pension term assurance comes in two varieties. Those that were allowed again under A day rules and then promptly removed as the Govt changed its mind and those sold under pre 2001 rules which were allowed to continue providing there was no break in payments.

paris12

How do i go about getting an equity release plan and is it worth it

dunstonh

paris12 wrote: »

How do i go about getting an equity release plan and is it worth it

Please start your own thread and not "hijack" someone elses. You may also wish to post this in the mortgages section as equity release is more commonly discussed in there due to the fact it is a form of borrowing against your house.