Tax-Efficient Life Cover for Contractors
Relevant Life Insurance helps limited company contractors protect their families with life cover paid through their business ,not personal income. It’s a smart, tax-efficient way to safeguard your loved ones while reducing company tax bills.
Why Relevant Life Insurance Is Ideal for Contractors
As a contractor, you don’t have access to traditional employer life cover ,but that doesn’t mean your family should go unprotected. Relevant Life Insurance provides personal life cover paid for by your limited company, offering the same peace of mind as an employee benefit but with major tax advantages.
In the event of your death, the policy pays a lump sum to your beneficiaries, helping them manage living costs, mortgage payments, or any other financial commitments. Better still, your business pays the premiums ,making it a cost-effective way to protect your loved ones and reward yourself as a company director.
Unsure how to structure your cover? Our advisers can help you tailor a policy that fits your unique circumstances.
How Much Does Family Life Insurance Cost?
Your premium depends on several factors, including:
Age, health, smoking status, policy term, and level of cover.
However, unlike personal life insurance, Relevant Life premiums are paid by your company ,and they’re usually treated as a tax-deductible business expense. This means you could save up to 49% compared to paying for personal life insurance, depending on your tax bracket.
With affordable monthly premiums and generous tax relief, Relevant Life Insurance is one of the most efficient ways to protect your family while optimising your company’s finances.
How Much Does Critical Illness Cover Cost?
The cost of critical illness insurance varies based on several factors, including:
- Age
- Health
- Coverage Amount
- Your Lifestyle
However, Critical illness insurance tends to be more expensive than life insurance. Because you’re more likely to make a claim on a critical illness policy than on a life insurance policy.
Let Us Help You Find the Right Relevant Life Cover
Working out how much cover you need can feel complicated ,that’s why we make it simple. By assessing your income, dependants, and current mortgage, we’ll help you estimate the ideal level of protection to keep your family financially secure.
Our experts can guide you through every step ,from calculating the right cover amount to setting up your policy under a trust, ensuring it’s paid directly to your loved ones without inheritance tax.
If you’d like a quick estimate, our calculator can help you get started in minutes.
£ 0
Please note, these calculators provide only an estimate. For a precise evaluation, connect with our experts today!
Understanding Relevant Life Insurance
Here’s what makes Relevant Life Insurance different from standard personal life cover.
Company-Paid Protection
The policy is paid for by your limited company ,not you personally. This keeps your personal income intact while still protecting your family.
Tax-Efficient Benefits
Premiums are usually treated as a business expense, reducing Corporation Tax. Plus, there’s no National Insurance or Benefit-in-Kind charge.
Personalised Cover
This refers to how long the policy will pay out once you’re unable to work. Some people prefer payments to continue until retirement, but others may choose shorter periods, such as two or five years.
Trust-Based Security
This refers to how long the policy will pay out once you’re unable to work. Some people prefer payments to continue until retirement, but others may choose shorter periods, such as two or five years.
Relevant Life Insurance is an essential tool for contractors who want to protect their families and run their businesses efficiently.
How Contractor Mortgage Solutions Can Support You
We’ve helped countless contractors set up Relevant Life policies that combine personal security with tax efficiency.
Expert Guidance:
Our specialists understand contractor income, company structures, and tax implications ,helping you find the most efficient cover possible.
Financial Production:
We help our customers secure the best income protection cover from the most trusted and reputable companies.
Tailored Solutions:
Every policy is customised to fit your company, family size, and financial goals.
Long-Term Support:
We’re here to review your policy as your circumstances evolve ,ensuring your cover grows with you.
FAQ’S
Who can take out Relevant Life Insurance?
It’s available to directors, contractors, and employees of limited companies. Sole traders and partnerships usually don’t qualify.
Is it tax-efficient?
Yes. Your company pays the premiums, which are typically tax-deductible, and there’s no Benefit-in-Kind or income tax charge.
How is the policy paid out?
The payout goes into a trust and is then distributed to your chosen beneficiaries ,usually free from inheritance tax.
Can my company claim tax relief?
In most cases, yes. As long as the premiums are wholly and exclusively for business purposes, they’re allowable expenses.
What happens if I stop contracting or close my company?
You can often transfer the policy to a new employer or convert it into a personal life plan, depending on the insurer’s terms.