Contractor life Insurance

Life Insurance for contractors protects your mortgage and your family’s future standard of living. In addition, it protects your income by safeguarding your future earning potential, and your health.

Life insurance for directors is one of the most tax-efficient ways of providing director life insurance for you as an employee/director of your own contractor limited company. If we consider when is director’s life insurance tax allowable (UK), the director’s life insurance policy is paid for by your business. Basically, the HMRC approve these premiums as a tax-deductible business expense providing you meet strict conditions when setting up the policy. With Relevant Life Insurance for directors, premiums are not treated as a benefit in kind and there are no National Insurance implications.As a contractor, you work for yourself, and can miss out on benefits that traditional employees take for granted. After all, there is no sick pay or death in service benefit. Therefore, if you own a limited company and already have life insurance in place, you should consider switching to Relevant Life cover for directors’ insurance policy as it is tax efficient and could save you money.

So, what is Relevant Life Insurance for Contractors? And why could it be right for you? Certainly, the headline benefit is tax efficiency. Indeed, you can immediately save tax by the business paying the life cover premium. However, it is not treated as a benefit-in-kind as the premium is not included as a P11D benefit. Therefore, the Policy premiums are not subject to National Insurance payments for the employer or employee. As a result, your business can claim Corporation Tax Relief on the premiums and the benefit is payable tax-free.