If you’re a Director, you may already have Life Insurance to look after your loved ones after you’re gone. In return for paying a monthly premium, it pays out a lump sum to help look after them. But many contractors are switching to a product called Relevant Life cover, because it is much more cost-effective. Here’s why.
- It’s classed as a business expense.
Unlike traditional Life Insurance, which you pay out of your own pocket, Relevant Life cover can be classed as a business expense. That means the monthly costs can be put through your books, making it eligible for tax savings.
- You can save up to 100% of the cost personally.
No matter what your tax bracket is, you could save 100% on the cost of your life cover by placing the plan on company expenses. Taken over 25 years this adds up to a considerable amount. For instance, if you pay a £50 premium each month, this makes a total of £15,000 over 25 years (average mortgage term). But by switching to a Relevant Life policy, you’d save 100% of this cost, enough for a very nice holiday…
- The lump sum isn’t taxed.
The problem with traditional Life Insurance is that when your loved one makes a claim, they may find that the sum paid out isn’t quite as much as they thought. This because it’s subject to inheritance tax. However, providing your Relevant Life policy is sent up correctly by an expert, the benefit paid out won’t be taxed, so they’ll get the full amount.
What to do next?
The benefits of Relevant Life cover are plain to see, but with any cover, factors can vary a great deal depending on who you are and your policy provider. It is important to choose a policy that fits you and the needs of your loved ones, and this is where we can help. We know all there is to know about getting you a policy that fits you down to the ground and saves you money.
If you are an accountant and have clients you think would be interested in Relevant Life why not drop us a line on how you can become a Relevant Life Expert partner.
Use our online calculator to find out how much you could save: http://www.relevantlifeexpert.co.uk/
To speak to and adviser today, please call 01202 700053
Send us an email: firstname.lastname@example.org