"Life insurance" with pensions
Most personal pension plans give you the opportunity to buy this alongside your pension. (Actually this is technically life assurance, but what the hey.).
This means your dependants would get a tax-free lump sum if you die before retirement. You'd receive tax relief on these assurance premiums.
The amount you're "assured" for depends on what you've agreed.
The assurance policy could be from a different company to your pension provider - and possibly cheaper.
A favourite trick of our dear finance companies is to "bundle" products together and hide the fact that they're more expensive so it's worth shopping around.
The amount you're assured for depends on what you've agreed.
Occupational pensions often pay out a generous death benefit if you die before retirement. They usually include provision for a spouse's pension too. See life insurance and Occupational pensions.
Pension Basics Contents
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