Relevant Life Insurance for Contractors with a Limited Company
Relevant Life Insurance offers contractors a tax-efficient way to provide ‘death-in-service’ benefits through their limited company. This policy allows your business to pay for life insurance, delivering a tax-free lump sum to your family or financial dependents in the event of your death or terminal illness.
How Relevant Life Insurance Works:
- If your partner is an employee of your company, such as a company secretary, you can tailor the policy to cover both of you.
- The policy covers you up to age 75 and ensures peace of mind, knowing that your family or chosen beneficiaries will be financially secure.
Why Relevant Life Insurance is a Smart Move for Contractors:
- Tax-Deductible Expense: Premiums are treated as a business expense, reducing your company’s tax bill.
- Premiums You Can Rely On: Monthly payments are guaranteed, offering stability.
- Flexible Coverage: Policies can be level or increase over time, and life milestones (such as having children) allow adjustments without additional underwriting.
- Added Benefits: Many policies include perks like private GP services or a second medical opinion.
- Inheritance Tax-Free: The payout is usually exempt from inheritance tax, ensuring your family gets the full benefit.
- Transferable Policy: If you switch companies or move the policy into your personal name, you can take the cover with you.
- Generous Cover Limits: You can secure up to £10 million in life cover.
- Trust Protection: Writing the policy in a discretionary trust ensures payment directly to your family or dependents.
All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs’ practice. Levels and bases of tax relief are subject to change.
Why we’ve partnered with Broadbench Ltd
Navigating relevant life insurance can be complex. That’s why we recommend Broadbench. Their expert advisers specialise in contractor-specific solutions, offering whole-of-market advice tailored to your unique needs. From risk mitigation to tax efficiency, they simplify the process, ensuring you get the right coverage without the hassle. And the best part? There are no fees for their service—Broadbench is paid by the insurance provider if you choose a product.
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Things to Consider:
- Joint cover isn't available.
- Critical illness cover cannot be added.
- Coverage is only available for UK residents employed by a UK business, and ends at age 75.
- Sole traders and partnerships are not eligible for this policy.
By setting up a Relevant Life Insurance policy, you protect both your family and your business, all while benefiting from tax efficiencies. It’s a win-win for limited company contractors looking to secure their loved ones' future.
Why Apply for Insurance Through Contractor UK?
At Contractor UK, we understand the unique challenges contractors face, especially when it comes to financial security. That’s why we’ve partnered with Broadbench to offer our members specialised, independent financial advice tailored specifically for contractors.
Here’s why applying through Contractor UK is the smart choice:
- Contractor-Specific Expertise: Broadbench specialises in finding insurance that meets your unique needs as a contractor, ensuring you get essential cover at an affordable price.
- Proven Track Record: Thousands of contractors have trusted Broadbench to protect their families and secure their future.
- Tailored Life Cover: Broadbench advisers offer a range of life insurance policies that can be customised to suit your individual needs.
- Independent Financial Advice: As independent advisers, Broadbench searches the entire market to find the best coverage options for you.
- Trusted Providers: They only work with insurers known for reliable claims payouts and long-term affordability throughout your contracting career.
Partnering with Broadbench means you’ll get expert guidance and insurance that truly protects what matters most. Apply through Contractor UK and ensure your financial security today.
