Few of us like talking about life insurance, let alone become moved to actually take out a policy. For one, the thought of dying emphasises our mortality. And two, it means paying for cover from which the policyholder will never see the benefit.
It’s so taboo that, according to YouGov, almost 18½ million UK subjects don’t have life cover. That’s more than 1-in-3 working-age adults whose death would threaten their survivors’ lifestyle.
Many contractors fall into this bracket, which, in our experience, is somewhat understandable. Until now, generic life cover hasn’t accommodated the way independent professionals work.
That’s because insurance providers tailor the vast majority of life insurance policies to employees. Premiums come from post-tax salary and are only available through group life cover schemes.
This contrived environment may work for corporations, but doesn’t reflect the way contractors work. With no life plan in place, contractors are leaving their families’ prosperity to chance.
But a new life insurance concept is challenging the status quo. It’s designed with limited company and personal service company owners in mind:
- no group-only rule; independents operating through limited companies welcomed;
- premiums paid through your business before deductions;
- death benefits payable based on the way contractors structure their income and accounting.
Life insurance for contractors has changed; shouldn’t you, too?
We get so fraught if the cover on our TV or washing machine expires. We cover buildings and contents, our car and even our pets without thinking twice.
But insuring our families against a drastic drop in household income? It’s the most important cover of all and we just ignore it.
It’s time to change the way we think about protecting our nearest and dearest for when (not if) we die.
Relevant Life Insurance for Contractors makes achieving the change in mindset simple, painless. Here’s how.
Limited company contractors have seen successive governments reduce their list of tax-deductible assets. Pension ceiling lowered, travel and subsistence expenses wiped out; the list goes on.
Relevant Life cover goes some way to redressing that balance. Paying premiums has never been easier. Nor have they been so beneficial to contractors operating through a limited company.
How a Relevant Life plan can benefit contractors
You decide the best life insurance policy for your circumstances. To start, consider what you need the cover to pay off if you die before your time:
- your (joint) mortgage;
- secured and unsecured loans;
- overdrafts;
- store and credit cards.
You decide the amount you want your Relevant Life insurance to pay out.
The last thing you want is for your family to pick up your tab and try to replace your income. At least if they’re debt-free, the roof over their head will be as safe as houses.
Then you decide how to pay the premiums. And this is where contractors benefit more than most.
Rather than you pay the premiums after tax from net income, you treat them as a business expense. This way you pay for your family’s future security from gross income before tax.
Upon your death, they receive a lump sum payment. And here’s another bonus. Paying for life cover through your company means it comes from a trust. Not only are your premiums free of tax, but the lump sum is free from inheritance tax, too.
Relevant Life has made affordable life insurance a reality for independent professionals. Contractors can sleep easy, knowing that they’ve assured their family’s security once they’re gone.
To get a life insurance quote tailored to you, work out what you need to cover then call us. Cover no longer comes at a ridiculous premium for contractors.
