Irish Independent: Your Questions – Should I take out a regular life insurance policy?


According to Barry McCutcheon of Royal London, on the basis that you are not in a company pension, but rather contributing to a personal pension, you are eligible to take out a highly tax-efficient type of life cover called pension term assurance. With this type of plan, you are entitled to tax relief on each monthly premium that you pay. Assuming you pay income tax at a rate of 40%, and your monthly premium is €100, the net cost to you would be €60.