Life Cover for Contractors
Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer a ‘death-in-service’ benefit to its employees and directors. It’s set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured. The proceeds go directly to the employee’s family or financial dependants.
Reasons to consider Relevant Life Cover*:
- Counts as a tax-deductible business expense
- Insurer Support services such as Private GP Services and Second Medical Opinion are often included
- The premiums are paid monthly
- Guaranteed premiums
- Cover can be level or increasing
- Life change milestone events can allow for the cover to flex without additional underwriting
- Benefits usually free from inheritance tax
- Maximum amount of cover available is £10 million
- Policy can usually be transferred to another company or into personal name
- Policy must be written in a discretionary trust to ensure payment to family / dependants
*Relevant life cover may not be suitable for everyone:
- Joint cover is not possible
- Critical Illness cover cannot be included
- The person covered must be a UK resident and an employee of a UK business and cover must stop by age 75.
- Relevant Life Cover is not available to sole traders or partnership companies
Find out more about protecting yourself and your loved ones today!
A short, free consultation with one of our expert advisers will ensure you get a tailored quote. Complete the form below telling to book your call.