According to research from LV,* the cost of raising a child has reached an all-time high of over £230,000, which is now more expensive than the UK's average house price.
According to YouGov, there were 18.4 million people in the UK in 2014 without life insurance, making up a surprisingly high 46% of the UK adult population!
While Directors and employees within large companies can take advantage of group life schemes and death in service, individuals like Contractors will most likely be paying for personal life insurance out of taxed income.
This no longer needs to be the case!
By switching to a Relevant Life Policy, Contractors could save over 50% on their personal life cover. How? Well, put simply, a Relevant Life Policy is an effective way of getting personal cover paid by a company, as a business expense, rather than through taxed income via a more traditional policy.
This tax-efficient method retains the same level of cover but can save the likes of Contractors a considerable amount through savings in National Insurance, Income and Corporation Tax.
To see how, take a look at our example below which highlights how John, a UK-based Contractor, saved 57.82% on his monthly premium costs:
Total monthly cost to John and his company: £113.80
(Includes: Premium cost, employee NI contribution, income tax, employers NI contribution and Corporation Tax rebate)
Relevant Life Plan:
Total monthly cost to John and his company: £48.
(Includes: Premium cost and Corporation Tax rebate)
John could also extend the policy to other staff, for example a spouse if they currently receive a salary from the company.
To find out more about Relevant Life and how it can help you save £1,000s, contact the Relevant Life Expert team.
Broadbench's Relevant Life Expert is authorised and regulated by the Financial Conduct Authority number 590288 in respect of mortgage and insurance mediation activities only.
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