If you’re a Contractor or company Director looking to buy life insurance for yourself and your employees, it’s your lucky day. We’re here to tell you that there’s a tax savvy, money saving way to do it.
Say hello to Relevant Life Insurance.
Put simply, Relevant Life Insurance is tax efficient life cover for company Directors and LTD company employees. It moves the cost of your life insurance policy from your pocket to your company expenses & the taxman - saving you money.
Paying for your life insurance this way is highly tax efficient for the business because the payments are normally tax deductible.
And, if you have employees you want to cover too, it’s highly tax deductible for them, because the tax man doesn’t consider the payments a benefit in kind.
Here’s how it works:
Let’s say you own your own company and pay £100 a month from your own pocket for life insurance - it’s costing your company more than it should.
For starters, if you’re a 40% taxpayer, there’s income tax and 2% employee national insurance contribution, plus 13.8% employers’ national insurance contribution.
In fact, after 19% corporation tax relief, the net cost to your company works out at £158.93 per month for you to pay for the policy personally.
If you pay £100 a month for a Relevant Life Plan you won’t pay any national insurance contributions or income tax on the premiums but you still get the 19% corporation tax relief, making the net cost only £81 per month.
That’s a huge saving of £77.93 a month or £935.16 over the year.
How to qualify:
Fortunately, this saving is readily available to you and your bank balance. All you need to qualify for Relevant Life Insurance is to be a salaried Director or an employee of a LTD company and resident in the UK. That’s it.
Beyond the savings you’ll make by paying for your life insurance in this tax savvy way, you'll benefit from the peace of mind that life insurance brings with it - that is, after all, why we get life insurance in the first place!
More specifically, if the worst happens, the sum you are insured for (on death or terminal illness) could be used to help with:
Your Mortgage: Relevant Life Insurance could be used to repay your mortgage debt, leaving your family mortgage free and with no further monthly payments to manage
Your Family: Relevant Life Insurance protects your loved ones and the lifestyle they’ve become accustomed to; safeguarding your family's future standard of living if you are no longer able to
Your Income: Relevant Life Insurance can safeguard your future earning potential. If the worst happens, you can leave a multiple of your annual salary as a lump sum as a means to replace the loss of future earnings your family would have normally benefited from
Your Health: Relevant Life Expert have selected insurers who offer more than just tax efficient life cover. Speak to an adviser to learn about the extras benefits, such as discounted gym membership, discounts on fitness trackers, trainers, spas and sports equipment, that we can build into your insurance policy
Sounds good right? It is. If Relevant Life insurance sounds right up your alley,
follow this link to find out more and to speak to a Relevant Life Expert.