Insurance: income, life and critical illness

[JoJoGabor]

I have life insurance only so the mortgage gets paid off if I die. The rest just works out to expensive IMHO. So my personal and business warchests should cover us for 2 or 3 years, before the missus has to get her ass back to her career as a teacher. I'm hoping over time the money saved in insurance will help increase the warchest sufficiently

[normalbloke]

Is relevant life just life insurance, or is it life and critical illness cover too?

As far as I am aware, it's for Death in Service only. May be worth ringing and checking if you are interested though.

[kempc23]

Is relevant life just life insurance, or is it life and critical illness cover too?

[normalbloke]

Relevant Life Policy Insurance for Company Directors

Yep, all of it.

See this - it's possible these days for the Company to fund your life insurance with no BIK. Mainstream and in no way 'dodgy' or illegal.

Relevant Life Policy

There are 4 big Insurance cos now offering this. I arranged mine last year when I re-visited all my insurances etc.

Also worth bearing in mind that for under 60's, the chance of you having a stroke or heart attack (and surviving) is far greater than you dying (from any cause). So Critical Illness cover may be back on your agenda.

[NotAllThere]

Fixed term life insurance is cheaper than "until death" (and if it is never claimed on, at least you won the bet you wouldn't die). I had a fixed policy to cover the family while the kids were young. Now they're older, the same level isn't necessary.

[Greg@CapitalCity]

Ur LTD pays this? Isn't it a BIK?

Yep, all of it.

[northernladuk]

Ur LTD pays this? Isn't it a BIK?

Probably but judging from recent posts he has the worlds worst accountant. Saying that though he said his accountant is super cautious so something doesn't add up here.

[stek]

I was pretty well looked after at my company before contracting so the Mrs insisted I got "like for like" cover so we were no worse off. My Ltd company pays around £300 per month for the following

Critical illness cover Lump sum £100k on diagnosis of any one of about 50 nasties
Income protection £3000 monthly TILL RETIREMENT or for as long as I can no longer do my current job (this is worth noting as a lot of policies state you will be paid if you can't work at all also many expire after 12 or 24 months). Deferred for 12 weeks.
Life insurance for £300k
Plus the wife is company secretary and has £100k life insurance and £50k critical illness cover
We are both late 40s and I have some loading on there due to my rather large belly. So if you don't drink beer and are a bit younger and fitter you will probably find cover a fair bit cheaper than this.



I would not consider contracting without this kind of cover in place. You just never know....

Ur LTD pays this? Isn't it a BIK?

[Greg@CapitalCity]

I know its been mentioned before, but getting your company to pay for your insurance policies will give rise to a benefit in kind taxable charge.

For life insurance, consider taking out a "Relevant life policy" (do a Google search). The premiums are tax deductible for the company, and give rise to NO benefit in kind taxable charge on you.

[luccass]

I was about to start similar thread Will come back later to see what others also say

Would anyone recommend any Insurance Provider?

[Arab]

We'v got the lot

I was pretty well looked after at my company before contracting so the Mrs insisted I got "like for like" cover so we were no worse off. My Ltd company pays around £300 per month for the following

Critical illness cover Lump sum £100k on diagnosis of any one of about 50 nasties
Income protection £3000 monthly TILL RETIREMENT or for as long as I can no longer do my current job (this is worth noting as a lot of policies state you will be paid if you can't work at all also many expire after 12 or 24 months). Deferred for 12 weeks.
Life insurance for £300k
Plus the wife is company secretary and has £100k life insurance and £50k critical illness cover
We are both late 40s and I have some loading on there due to my rather large belly. So if you don't drink beer and are a bit younger and fitter you will probably find cover a fair bit cheaper than this.

I would not consider contracting without this kind of cover in place. You just never know....

[Greg@CapitalCity]

I was in a similar situation a few years ago. In the end we decided to go for just the Life Insurance option. Your attitude to risk is a big factor here, and I agree, critical illness and income protection seem hard to justify.

While you are getting your ducks in a row with a young family, also ensure you get a Will sorted out.

[Jessica@WhiteFieldTax]

Something to consider is upping the deferred period on income protection, if you have a bit of a war chest to tide you over. Also having different layers of cover.

For example I have all mine deferrd for 13 weeks, and then tapered so a higher amount for two years, then a lowr amount.

Thinking is 13 weeks I can cover from savings, two years buys breathing space, and if its anything that takes me out of work over two years, then we would make life style adjustments.

[kempc23]

Hello

I have been contracting for coming up to two years now. We have just had a baby, and my wife is not planning on going back to work. We have also just moved house, and have a big mortgage. So I need to start considering insurance. I just wanted to see what other peoples thoughts were. These are mine-

Income protection: Quotes seem to be around £60pm for a policy of £2000pm if I am unable to work due to sickness or accident. But most of them seem to only pay out for a maximum of 2 years. Seems overpriced to me, and not really worth it, as I would usually have enough money in the company to last me a while.

Life insurance: I have discussed this with my wife, and the minimum we would want is a lump sum to pay off the mortgage, and potentially our sons school fees as well. Quotes for this seem to be a bit more reasonable, we have been quoted around £30pm for £500k of cover.

Critical illness cover: This pays out on diagnosis of a critical illness. So if you get diagnosed with cancer say, you get £500k or whatever, as soon as you are diagnosed. Presumably, to enable you to have a less stressful lifestyle. This insurance is very expensive, and we have had quotes of around £200pm. To me, it doesnt seem worth it to us.

Do people here have 1,2 or all of the above? Im interested to find out what other people have gone for. Currently im thinking we are only going to go for life insurance and neither of the other two.