Life insurance is invaluable as a contractor. It gives you the peace of mind that when you die, your loved ones will be financially provided for. This is especially important when you are the main breadwinner, have a mortgage to pay and a family to provide for. We all want to know that our loved ones won’t have to struggle when we are no longer around. Life insurance does just that.
What many contractors don’t know is that there is a tax efficient life insurance product that is designed specifically to afford small businesses the opportunity to benefit from the same tax breaks that bigger corporations enjoy. Say hello to Relevant Life Insurance!
Relevant life insurance is tax efficient life insurance for company directors and LTD company employees; making it perfect for contractors.
By paying for the monthly premium through your company, you move the cost from your pocket to your company expenses and the taxman – saving you money.
Specifically, money is saved because the premiums are not subject to national insurance. You also save tax by virtue of the company paying for it directly. More than that, you’ll be glad to know that relevant life insurance is not treated as a benefit in kind, nor does it count towards your lifetime pension allowance.