Relevant Life Insurance 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.
ContractorUK have teamed up with Freelancer Financials to help you find a relevant life insurance suited to your specific needs
How does a Relevant Life Cover Policy work?
- If you have a partner who receives an income from the company then you can tailor the policies to cover you both individually as long as they are an employee of the company, for example a company secretary.
- This life cover will pay out a lump sum in the event of your death up to age 75 and can offer you the peace of mind that your family, an individual or a charity of your choice will be looked after.
Pros to having Relevant Life Insurance
- 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 £10million
- 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
Cons to having Relevant Life Insurance
- 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
Why apply through the ContractorUK?
ContractorUK recognised the need to offer our members Independent Financial Advice tailored to contractors and teamed up with Freelancer Financials to fulfil this need.
- Freelancer Financials specialise in finding the right insurance plan to suit your individual needs as a contractor and aim to provide this essential cover for you at an affordable price.
- The Advisers can recommend a variety of life cover policies which can be used in different ways to suit your various needs. They have negotiated with major insurance providers in the UK in order to provide specialist Relevant Life cover which meets the specific needs of contractors.
- They only work with insurers that have a good history of paying claims and offer affordable cover for the duration of your time contracting.
- The advisers at Freelancer Financials can handle the whole application process for you, from setting up the policy initially to transferring it to a new trustee or helping your family to make a claim if the worst should happen.
Get in touch with Freelancer Financials about your policy today by filling in the form below
ContractorUK are not authorised to offer regulated insurance advice. ContractorUK are introducers to Freelancer Financials.
Financial advice is given by Freelancer Financials, which is a trading name of Mortgage Quest Ltd and is regulated and authorised by the Financial Conduct Authority (FCA). FCA registration number 312484.