Life insurance through Ltd

[davetza]

I know that some permie roles include life insurance in the benefits along with pernsion etc etc. Has anyone does this through their Ltd? Is it treated as a BIK?

[Clare@InTouch]

Normally it's a benefit in kind, but there are policies that can be paid without such implications. A question for your IFA though, I don't have more details!

[Fred Bloggs]

All the permie schemes I know of have the life insurance actually built into the pension scheme so it isn't actually an insurance policy as such and so it isn't a BIK.

[Alan @ BroomeAffinity]

What you need is a "relevant life policy". The company can pay the policy contributions as a business expenses and there is no B-i-K for the directors. There is no tax implication when it pays out either. A few of our clients have set them up recently through our IFA and they seem to work well enough. Its a relatively small market and not all life companies are doing it. From memory, we used Bright Grey, which is part of Royal London, for most of them.

[davetza]

What you need is a "relevant life policy". The company can pay the policy contributions as a business expenses and there is no B-i-K for the directors. There is no tax implication when it pays out either. A few of our clients have set them up recently through our IFA and they seem to work well enough. Its a relatively small market and not all life companies are doing it. From memory, we used Bright Grey, which is part of Royal London, for most of them.

Thanks for the info. The video at the bottom of this page is quite useful for anyone thinking about this.

Relevant life policies | Business | Bright Grey