Allowable Business Expense

The word is finally out about this Allowable Business Expense Contractors are loving Relevant Life with Critical Illness cover

More and more Limited Company Contractors are now becoming aware that they can pay for their personal Life & Critical Illness Cover through the business.

Contractors are replacing their personal life insurance policies with a new product called ‘Relevant Life with Critical illness’, this is due to the fact it’s much more cost effective than paying for the cover personally. Those that have had personal cover have found they will either save money on what they are paying now or, for the same monthly premium, increase their cover meaning their families are better protected.

Here are the main reasons this policy is proving so popular;

• The limited company pays for your life insurance premiums   –  not you.
• It can be up to 50% cheaper than paying for the same cover personally.
• The limited company can claim Corporation Tax Relief on the premium payments saving 20%.
• The premiums are not classed as a benefit-in-kind or a P11D benefit.
• The benefit payment does not count towards your annual or lifetime pension allowances.
• Cover will be written into a trust, keeping the payment outside of your estate, avoiding probate and allowing the benefit to be paid to the people you want it to go to.

So, whether you are already paying for life & critical illness insurance out of taxed income or you have not yet got around to putting vital life insurance in place, a Relevant Life Policy could be the most tax-efficient solution.

For more information, contact C&D: Business Protection Specialists on 0330 043 4321 (local rate) or request your free impartial quote here.

You will also be able to see how much you could save compared to a conventional plan on the link above.