AVC additional family benefits?

T

trumpet

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I've just seen this on Cornmarket web site:- 'You can also use your AVC plan in the years prior to retirement to provide additional benefits for your family in the event of your death. These benefits include:
A death benefit of up to 2 ½ times your annual salary, An additional pension for your dependants'. Is this option only with Cornmarket AVCs as I'm looking at going with a Zurich product via LABrokers. Any advice would be appreciated.
 
In the event of your death, the death benefit payable under an AVC is the same with any AVC - Cornmarket or LABrokers. If the Cornmarket website is referring to an additional Death in Service benefit (a form of additional life insurance contract) then this would be a separate product to your AVC.
 
The Cornmarket comment is I think made in the context of Civil Servants. Typically on death the CS Pension Scheme pays 150% of Salary as a lump sum. The Revenue maximum is 4x Salary. That’s where the 250% reference comes from. Any AVC fund can be payable in addition to the 150%.
However I think it would be very unusual to plan for the AVC fund being a death benefit, since it requires you to die before reaching retirement age?????
 
Conan said:
The Cornmarket comment is I think made in the context of Civil Servants. Typically on death the CS Pension Scheme pays 150% of Salary as a lump sum. The Revenue maximum is 4x Salary. That’s where the 250% reference comes from. Any AVC fund can be payable in addition to the 150%.
However I think it would be very unusual to plan for the AVC fund being a death benefit, since it requires you to die before reaching retirement age?????
Click to expand...

Is it not based on the tax free lump sum that would have been payable with a minimum amount of 1 times salary. They also get a spouse's pension too.


Not sure about the Cornmarket marketing bit. The maximum lump sum is 4 times salary plus the value of any personal contributions, including AVC's. So the AVC amount would be paid out tax free regardless and has no bearing on the 4 times salary amount.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
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