Paramount Group - Decreasing Term Assurance

Newsflash

Protecting Tax Free cash

As you generally advise your clients regarding remuneration strategy and more importantly profits extraction it appears, following research with our existing clients that, for those who hold executive/directors pension policies and even those with small self administered schemes, it is now worth a review. This would examine whether it would be advantageous to transfer the existing benefits to a section 32 or section 32A (Block transfer) and start funding a self invested personal pension. For those who have small self administered schemes it is still possible to transfer to a section 32 and have the section 32 self invested, utilising the commercial property occupied by the sponsoring employers company.

Decreasing Term Assurance

Often referred to as Mortgage Term Insurance, such a benefit is set up to protect a mortgage debt that reduces over a specific term. Rather than start very high and end very low, the premium will remain the same throughout (providing guaranteed rates have been selected – see further) but the sum assured will reduce throughout and aim to clear the outstanding mortgage balance as and when any claim should arise.