Our client, a Limited Company Business owner, wanted life cover to protect his family and pay out a substantial lump sum should he die during the policy term. This lump sum was to be paid via a trust, so his children could put it towards day-to-day costs, university and any other expenses incurred further down the line.
Higher Mortgage rates
We recommended that the sum assured tally with the client’s income – providing 20 years’ replacement income, or just over £3m. But, as the client is 53-years-old and wanted the policy to run to his planned retirement age of 70. It meant the monthly premiums would be fairly high.
After sourcing numerous insurers from our wide panel, we identified that relevant life cover would be more tax-efficient than a standard policy for our client.
Key requirements: –
An insurer offering a relevant life policy, so that the cover is treated as a business expense. Qualifying for full income tax national insurance and corporation tax relief.
Over £3m of life cover.
A policy running for 17 years until the client hits his retirement age of 70.
After sourcing our wide panel of insurers, we found one that offered relevant life cover, as well as good service and an excellent claims record.
Application Process
The application process: We assisted the client in filling out the insurer’s forms. Giving his personal details and answering questions about his health and lifestyle.
Life cover: £3,112,668 Terminal illness cover: £3,112,668 (included at no extra cost) Length of policy: 17 years Age of life insured: 53-years-old Monthly premium: £505.92
The life assured must be an employee of the business. This can include company directors taxed on an employment income basis. However, it’s not possible for any business owners taxed on a self-employed basis to be lives assured. This exclusion covers partners in traditional partnerships, partners/ members of limited liability partnerships (LLPs), and sole traders.
