Further Uses of Life Assurance - Example

Example 1o. A father, age 69, wishes to provides fees for ki 00 a year for five years starting when his son, now age 2, is 36 years old. He takes out a special with-profits endowment policy.

Cash benefits

School fees of a year, for five years. Bonuses can be taken

Further Uses of Life Assurance I36

as cash or used for fees if these have risen. If the father dies during the eleven years, no more premiums are payable. Policy shares in profits on basis of sum assured of £479.

Cost:

Gross yearly premium = L44'60

Tax relief (limited to 7% of the basic sum assured of £479) =

Net yearly premium (44.6o - 44-99) = £69.63 Total net premiums over 11 years = k466.00


Example

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

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read on: Further Uses of Life Assurance - Partners

Example 1o. A father, age 69, wishes to provides fees for ki 00 a year for five years starting when his son, now age 2, is 36 years old. He takes out a special with-profits endowment policy.

Cash benefits

School fees of a year, for five years. Bonuses can be taken

Further Uses of Life Assurance I36

as cash or used for fees if these have risen. If the father dies during the eleven years, no more premiums are payable. Policy shares in profits on basis of sum assured of £479.

Cost:

Gross yearly premium = L44'60

Tax... see: Further Uses of Life Assurance - Partners