Reply to: life insurance

[Power Mortgages Ltd]

Hope the mods are ok with me posting this link (please let me know if not) but this article may give you guys a bit more information on Relevant Life:

<admin note>All good thanks - we have our own guide here http://www.contractoruk.com/insuranc..._policies.html</admin note>

[TheFaQQer]

Got that, and got an 'are you sure you need all that cover?' call from the provider shortly after buying the policy on-line.

'Yup' says I - '18*annual income to cover my youngest until he's 20.'

'Oooo' says the caller. 'That's alot!'

If they can't do enough with a cash lump some equivalent to ten times your income, then they need educating as well as a life insurance policy.

And on that kind of money, make sure you put it in a trust so that you avoid inheritance tax.

[Power Mortgages Ltd]

I asked my accountant about paying via my Ltd Co and the reply was that the beneficiary would have to be the company rather than the wife and kids. If you pay via Ltd Co, who is the beneficiary?

It's a relevant life policy you need.

Hi Geoffreywhereveryoumaybe, Mudskipper is right, it is a Relevant Life Plan you need where you can pay for the life assurance through the Limited Company but you can set the beneficiaries to be your wife and children.

Ben

[bless 'em all]

Consider what your annual income is (imagine you're a permie rather than a contractor!). Multiply it by 10.

That's the lowest you should have, assuming you have a family to support.

Got that, and got an 'are you sure you need all that cover?' call from the provider shortly after buying the policy on-line.

'Yup' says I - '18*annual income to cover my youngest until he's 20.'

'Oooo' says the caller. 'That's alot!'

[TheFaQQer]

No idea I don't have a mortgage either, just concerned about leaving my kids high and dry if I croak. Warchest isn't that big that it will last 20 years.

Consider what your annual income is (imagine you're a permie rather than a contractor!). Multiply it by 10.

That's the lowest you should have, assuming you have a family to support.

[TheFaQQer]

Policy 1 - £75k which started out as a free £10k insurance policy via the Sun when I was a student. Gradually, they increased the cover. Think it costs me about £5 a month.

Policy 2 - £125k to pay the mortgage. Bank insisted on this, and I'd forgotten I had it until I questioned why there was a payment to Scottish Widows each month.

Policy 3 - £600k as a "real" policy, which was designed to pay off the mortgage and then look after the family.

[Lockhouse]

I've got some sort of cover with Aviva that pays out £100k if either myself or the missus get life-changingly ill or die. Costs around £90pm (we're older).

I've also got two endowments that pay out in full if I pop my clogs. Let's face it; that's the only way they're going to pay out in full. They've got 2 and 3 years to run respectively. Worst investments I ever made but I was young and stupid when I made them, I'm old and stupid now. Before anyone else says it.

[mudskipper]

I asked my accountant about paying via my Ltd Co and the reply was that the beneficiary would have to be the company rather than the wife and kids. If you pay via Ltd Co, who is the beneficiary?

It's a relevant life policy you need.

[geoffreywhereveryoumaybe]

Pretty cheap and worth it I reckon. I pay around £55 a month for 1 million. Organised with legal and general through contractor financials and I pay it via Ltd co.

I asked my accountant about paying via my Ltd Co and the reply was that the beneficiary would have to be the company rather than the wife and kids. If you pay via Ltd Co, who is the beneficiary?

[Power Mortgages Ltd]

I took out a £200k policy when the kids were small - term insurance but it was with Standard Life and goes on until I am 65, then I get all the premiums I have paid in back as a lump sum plus as a bonus got allocated SL shares when they floated
The negative is that the sum insured is "subject to review" at 10 years and every 5 years thereafter... just been through the 10 year 'review' and the feckers halved the payout... I suspect that in 5 years they will do the same effectively reducing the death benefit to zero at policy end - so that's something to look out for.
I'm currently looking at supplementing this with a key worker policy paid through the company

Hi Troll,

Speak to your Accountant but a Key Worker policy can have tax implications associated with it. Generally the proceeds of a payout are paid into the Ltd Co and your beneficiaries (who you actually want to leave the money to) will have to pay tax removing this money from the Limited Company.

A 'Relevant Life' policy may be worth looking into. The Ltd Co still pays for the policy but you can choose who you want your beneficiaries are so the money is paid directly to them and consequently you do not have the tax implications associated with taking it out of the Ltd Co.

Ben

[Freamon]

I've got a friends life policy to cover the mortgage

What are you planning on doing to them?

[Troll]

I took out a £200k policy when the kids were small - term insurance but it was with Standard Life and goes on until I am 65, then I get all the premiums I have paid in back as a lump sum plus as a bonus got allocated SL shares when they floated
The negative is that the sum insured is "subject to review" at 10 years and every 5 years thereafter... just been through the 10 year 'review' and the feckers halved the payout... I suspect that in 5 years they will do the same effectively reducing the death benefit to zero at policy end - so that's something to look out for.
I'm currently looking at supplementing this with a key worker policy paid through the company

[Troll]

Pretty cheap and worth it I reckon. I pay around £55 a month for 1 million. Organised with legal and general through contractor financials and I pay it via Ltd co.

Fook that is cheap!

[MaryPoppins]

I've got a friends life policy to cover the mortgage, and a separate life cover with pru. Think am convinced will die very soon.

[MarillionFan]

Just looking at this. Do you have it? How much do you pay? Do you have loads or just enough to cover the mortgage?

No I don't. But Suity's wife & I have insured him for £5 million quid for accidental death by a piano falling from 20 floors up in a Dusseldorf hotel. What are the chances hey?