I guess if I ever stop contracting, it's not possible to transfer the life insurance from company owned to personal-owned either, right? Because if after 10 contracting you stop... your life insurance premium would go up massively, that'd be a great. Young people = cheaper life insurance.
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Life Insurance as a contractor
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Surely if you are a contractor, your net worth is 300K, or will be very soon, so you can just make your dependent your beneficiary in your will? Or do they need 300K more than you want to leave them?
In any case, you only need insurance until your own assets reach the minimum amount you think your dependent will need.
(I am 51, have a family, and have never needed life insurance, and never will.)Last edited by IR35 Avoider; 29 December 2015, 16:03.Comment
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Originally posted by IR35 Avoider View PostSurely if you are a contractor, your net worth is 300K, or will be very soon, so you can just make your dependent your beneficiary in your will? Or do they need 300K more than you want to leave them?
In any case, you only need insurance until your own assets reach the minimum amount you think your dependent will need.
(I am 51, have a family, and have never needed life insurance, and never will.)
Unfortunately not all illnesses are quick meaning you could have a year or more where you can't work and have to use some of those assets to live on."You’re just a bad memory who doesn’t know when to go away" JRComment
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As others have said, what you're looking for is relevant life policy.
If you are already an IPSE+ member, make sure you sign up for the free 5K cover for starters - not quite the 300K you're looking for, but better than nothing and it's included in your membership, but you do have to opt in to it.Comment
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Originally posted by ujjain View PostMy question... can my business pay for this or do I?Comment
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Originally posted by ujjain View PostI guess if I ever stop contracting, it's not possible to transfer the life insurance from company owned to personal-owned either, right? Because if after 10 contracting you stop... your life insurance premium would go up massively, that'd be a great. Young people = cheaper life insurance.
In the end I found the additional cost of a relevant life plan outweighed the tax savings of putting it through the company, although there wasn't much in it. I went for a personal plan instead (we have two, my wife and I have a joint decreasing term to cover off the mortgage and I also have a £400k level term 21 year policy for myself) - I pay about £20/month for each (I had quotes of half that amount but some medical background issues meant I had some premium loading issues).Comment
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Writing any policy into trust is sonsible (no idea if this is possible with a relevant life policy). This ensures those funds are never part of the estate.Comment
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Originally posted by mudskipper View PostAs others have said, what you're looking for is relevant life policy.
If you are already an IPSE+ member, make sure you sign up for the free 5K cover for starters - not quite the 300K you're looking for, but better than nothing and it's included in your membership, but you do have to opt in to it.
I'll make a call to Legal&General tomorrow with the same questions I've asked here and will post back with the answers.Comment
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Originally posted by mudskipper View PostAs others have said, what you're looking for is relevant life policy.
If you are already an IPSE+ member, make sure you sign up for the free 5K cover for starters - not quite the 300K you're looking for, but better than nothing and it's included in your membership, but you do have to opt in to it.Comment
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Originally posted by ujjain View PostAny way you can give me instructions how I can opt in?Comment
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