October 17, 2018Comments are off for this post.

The difference between Relevant Life Insurance and ‘normal’ Life Insurance

If you have ever wondered the difference between Relevant Life Insurance and ‘normal’ life insurance - you wouldn’t be the first! We aren’t delusional though, ‘life insurance’ is not the most exciting topic to spend time researching and understanding. So we’re going to keep it brief…

Life Insurance

Life insurance does exactly what it says on the tin. It’s a product that insures your life. Essentially, in the worst case scenario where you are in a critical accident or become ill and die, your loved ones or chosen beneficiaries would receive a pay out.

The benefit of Life Insurance:

  • It protects your loved onesIf you contribute an income to your family home (a mortgage, bills, or lifestyle costs) the financial implication of your death can be catastrophic. Life insurance ensures that all your debts are cleared, like your mortgage and credit card, as well as replacing income that would have been there if you were still alive. The kind that covers your bills and lifestyle

Relevant Life Insurance

Relevant Life Insurance does exactly the same as ‘normal’ life insurance except, that it was designed as a benefit for Contractors and ltd Company Directors. It is essentially a tax efficient way to pay for life insurance; as opposed to paying for you monthly cover through post-tax income, Relevant Life Insurance is paid for through your company expenses - saving you money.

The benefits of Relevant Life Insurance:

  • It protects your loved onesJust as with ‘normal’ life insurance, your family will be protected (which is why we want it in the first place!) but there is more...
  • You save money: If you are eligible to pay for your life insurance through your business, you could save money. See just how much by watching this short film
  • It’s not treated as a benefit-in-kind: Which means you don’t have to include it as a P11D benefit or pay tax on it

If you want any more detail on how to make your life insurance cover tax efficient as a Contractor or limited company Director, do get in touch.

September 3, 2018Comments are off for this post.

Review your life insurance when your circumstances change

With the children heading back to school, we recommend taking the opportunity to firstly, rest (!) and, secondly, to review your life insurance.

Life insurance can feel like a one time purchase, but the reality is that it’s wise to regularly review the policies you took out. We recommend every couple years with our clients because, inevitably, your life circumstances will have changed within these periods and, with that, the amount of cover that you now need.

As an example, when you first took out life insurance and critical illness cover, you may have just started contracting, been newly married and renting. Because of that, you cover simply needed to provide enough to support you and your other half’s general living costs in the instance that you became critically ill or, sadly, passed away. Now, you may be in your early forties, have a mortgage and two children who are at school.

It’s life circumstance changes like this that mean it’s wise to review whether the policies your originally took out are still fit for purpose.

A report by charity ‘Child Poverty Action Group’ in 2017, detailed the cost of raising a child to age 18 in 2017, for basic family incomes, to be £155,142 (if you are in a couple). With most contractors having an income that is significantly more than a basic family income, these costs are likely to be a lot higher.

With that in mind, if your circumstances have changed and you now have children, more children, or a lifestyle that has significantly shifted due to a higher income than when you first started out as a contractor, it is worth reviewing your life insurance and critical illness cover.

Take a moment, now the children are back at school and establish if the payout you or your family would be in line for would cover the new costs there are to raising children. If not, book yourself in for a review with one of our expert advisors and we’ll be happy to help.

April 8, 2018No Comments

The cost of raising a child increases

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.

Read more

April 8, 2018No Comments

18.4 million without life insurance. Are you one of them?

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!

Read more

0203 854 1500
advice@relevantlifexpert.co.uk

twitter
facebook-dreamstale25

About us   |   Blog   |   Partner with us   |   Contact us

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.
Registered address: 2 Stanley Road, Poole, Dorset. BH15 1QY. The Company is registered in the UK, number 07491324. Visit Broadbench's Privacy Policy here.
© 2018  |  Relevant Life Expert