Voluntary pension insurance does seem a lot like savings insurance, but here the event for which you are saving up is your retirement. Once reached, you can choose the period of time you (or someone else) will be receiving extra pension. The rest is fairly similar – you pick how much extra pension you want, and then pay regular instalments.
There are a few pension options from which you can choose:
- Lifelong – you set the date from which you will be receiving this pension, and if anything terminal were to befall you, the unpaid amount will be given to your specified beneficiary
- Term-Time – you set out the period during which you will receive your pension (such as 60 to 75 years)
Voluntary pension insurance contracts may include some extra conditions – such as payments in the event of various health issues and accidents. These conditions will not, however, be an automatic staple of the contract. They will need to be discussed and insured against (or not) at an additional premium.