Pension term assurance vs LTA

[chisser]

Could you help with this question so I know whether or not to apply for IP2014.


I am 51 and have a old pension term life assurance policy to which I have been contributing for more than 20 years i.e. pre 2006. It pays out a benefit of more than £1.4 million but only if I die and there is no other benefit such as a pension. I am given tax relief on the contributions since the policy pre-dates 2006. Does this count towards the new LTA of £1.25M which is being reduced to £1m next April?( If so does it only count if I die?)

If that is the case could this amount be counted for once of the Individual Protections that have existed e.g >£1.5M.

I estimated that my other pensions gave a LTA of between £1M and £1.25M on 1.4.15.

If I got IP14 but then subsequently cancelled my old pension term life assurance policy
because I could no longer afford the premiums would I still have protection to £1.5M?

HMRC and the policy provider seem unable to answer this question.

Thank you.

[ASB]

I am astounded the provider cannot provide details.

in general terms any payment made from the policy as a lump sum counts towards the life time allowance. No ide of ther terms in your specific policy of course and if the benefit is paid to speak c beneficiaries rather than you estate or can be commuted to some form of income to somebody then it is possible it is different.