What is life assurance benefit?
Updated 02 July 2020
This is a benefit you can pay for that provides a lump sum and/or a dependant’s annuity when you die.
Under your current pension, you might have the option to take out life assurance benefit or you might have life assurance benefit in place:
- If you have the option to take out life assurance benefit under your current pension but haven’t done this yet, you would lose the option if you transfer your pension to Retiready.
- If you have life assurance benefit in place under your current pension, the cover will stop if you transfer your pension to Retiready.
The life assurance benefit isn't available under a Retiready pension, so you should think about making other arrangements to provide this benefit in the future. It might cost you more, depending on your current age and health.
Transferring your pension may not be the best option for you, you should compare the benefits from your current pension with the estimated benefits of your new pension, including any guarantees and penalties. If you're unsure whether this is right for you or need advice, please speak to a financial adviser, which you may have to pay for.