Originally posted by BolshieBastard
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Life Insurance as a contractor
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Originally posted by mudskipper View PostNot sure, as I've already done it, but if you log into the IPSE site then try https://www.ipse.co.uk/futures/assurance it might be on there - IIRC I had to supply my NI number, but could bypass the DD instructions, although the site has changed since I did it. Failing that, ask on their forums and someone will hopefully steer you in the right direction.Comment
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Relevant Life cover does not cover critical illness, only payment on death. For me CI is just as important as Life cover, as it should be for most contractors, and most CI policies include Life cover, so I have not had to go down the Relevant Life route.______________________
Don't get mad...get even...Comment
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Originally posted by kaiser78 View PostRelevant Life cover does not cover critical illness, only payment on death. For me CI is just as important as Life cover, as it should be for most contractors, and most CI policies include Life cover, so I have not had to go down the Relevant Life route.Comment
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Originally posted by PerfectStorm View PostThe trouble with Life Insurance, I find, is that you're never able to claim on it....
Premiums paid by your company are not treated as a benefit in kind and no personal tax liability falls on you.
This saves a significant amount of money, especially for the higher rate taxpayer. Moreover, there are no National Insurance consequences for you or your company.
Benefits paid to your dependents under the trust are free of income tax. In most situations, they’re free of inheritance tax, too.
Also worth noting, Relevant Life policies do not form part of your annual or lifetime pension allowances. Most company sponsored death in service schemes will count towards that total.Comment
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Originally posted by ASB View PostWriting 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 kaiser78 View PostRelevant Life cover does not cover critical illness, only payment on death. For me CI is just as important as Life cover, as it should be for most contractors, and most CI policies include Life cover, so I have not had to go down the Relevant Life route.Comment
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Originally posted by TheCyclingProgrammer View PostCritical illness cover is not cheap though. I prefer to cover myself for this eventually by building up as big a war chest as I can manage.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.
First, the trustees can appoint the plan back to you. You can then carry on the cover as a personal policy. In that instance, you could also put it under a personal trust for the benefit of your dependents, if that’s what you wanted.
Or, if you move back into an employed role, you could ask the new employer to take over the policy and trust. If they agreed, you’d need to change the trustees to your new employer.
There’s also the chance that your new employer has their own scheme. Having a Relevant Life policy doesn’t stop you from joining that, too. You can continue your policy alongside theirs to give your dependents even more benefits.
Likewise, if you went back to being a contractor, then the reverse can happen. You change the trustee back to your company and pick up where you left off.
I hope that helps.Comment
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Originally posted by Freelancer Financials View PostI'm not sure who quoted you but it actually works out cheaper than a standard life policy. If you are over 50 and have pre-existing medical conditions then that could load the premiums. I agree that it's important to also build a war chest but I honestly believe it is also important to have another back-up plan.Comment
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