It’s not a subject that we like to think about but it is important to protect any dependants in the event of the worst. As a Contractor you miss out on the life cover offered by a large employer so it is vital that you put a plan into place to secure your families future should you die.
Our team of Independent Financial Advisors specialise in finding the right insurance to suit your individual needs as a contractor and provide this essential cover at an affordable price. Term cover offers an inexpensive protection policy that lasts for a given period and will end when the agreed term is finished. If you want to cover yourself for death at any age then a Whole of Life policy could be the answer. Despite being slightly more expensive than a Term cover policy, it is often popular with contractors because of the long-term cover that it provides.
123 Contracting clients can fund life insurance through their businesses with no income tax or benefit in kind considerations of any kind thanks to a change in legislation that means smaller companies now have the chance to tax efficiently provide death in service benefits for their employees. You can transfer the cost of life insurance to your business rather than fund the cost personally from your post-tax income. It may also be possible to have this payment treated as a business expense.
This cover does not affect your lifetime or annual pension allowances, so those freelancers with a large pension pot are still able to benefit from the lucrative tax relief on pensions contributions whilst your life cover contributions now offer you a further opportunity to save tax. The good news is that even if you decide to hang up your contracting hat and return to permanent employment, you can still benefit from the tax savings by simply transferring your policy to your new employer. Your cover is kept in trust and this not only keeps the money safe from any liabilities that the company has but also makes the plan easier to transfer.
To find out more contact the us by email at email@example.com or call Chris on 0845 834 0269.
Financial advice is given by a firm of IFAs, who are regulated and authorised by the Financial Conduct Authority.