Relevant Life Insurance is a Life Insurance policy owned and paid for by the Ltd Company, if you are a director of the Ltd Company you can take out the life insurance on yourself but the premiums will be paid by the company. This makes it a tax deductible cost just like tools or a new computer. This could make the policy a lot cheaper when compared to a standard policy which you take out in your own name.
How it works
Relevant Life Cover is taken out on the life of the employee (if you own 100% of a company you would be still be classed an employee) and written in trust. This means if the employee dies, the claim is paid free from inheritance tax to their beneficiaries (usually their next of kin or children). The policy is paid for by the company.
Benefits to you
Relevant Life Cover is arranged on an individual basis with the company as the policy owner, and the employee as the person insured. The company pays for the policy but unlike group schemes; HM Revenue & Customs usually consider the premiums a business expense (so you don’t have to pay national insurance contributions).
If you own a Ltd Company please get in touch to discuss options available to you and your loved ones.
Any references we make to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change.
We can help you!
At Simmonds Mortgage Services we can give you the expert advice you need and help you with your mortgage or insurance needs. Get in touch today 01344 225 149 or 07979 690 056. Alternatively please send us an email at firstname.lastname@example.org
Simmonds Mortgage Services is an appointed representative of Stonebridge Mortgage Solutions Ltd and can source the most appropriate cover from its panel of insurers with a free review of you overall protection and insurance needs. As with all insurance policies, conditions and exclusions will apply.