Take advantage of tax benefits of Relevant Life Insurance.
You are a director of a successful business and your family have a great lifestyle that you have worked hard over the years to achieve. Are you aware that as a director of your own company, your term life insurance could provide tax benefits while giving you peace of mind your family would be provided for in the event that something where to happen to you? You could also provide ter life insurance for your employees – even if you only have a few.
Who Could Possibly Benefit
Do you currently pay for your own term life insurance from your personal bank account?
If you are paying for your life insurance from your own bank account you will be paying out of post-income tax, and if you pay for it from your business account you will probably be taxed on the payment as if it was income. Larger companies avoid this tax by providing life cover for employees through a group ‘death in service’ life policies.
You too can now take advantage of the tax benefits available to larger companies by taking your life cover out through a ‘relevant life policy’. These can now be written on an individual basis (not just group life cover) so are available to all companies no matter how large or small.
There are tax benefits of relevant life policies available to both the employer and employees:
1. Potential tax relief on the premiums for the employer
2. No tax assessment of premiums on the employee as a benefit in kind
3. Premiums are not subject to National Insurance payments
4. The benefit is free of Income Tax
5. Benefits do not count towards the lifetime allowance for pension purposes
6. In most cases, benefits are paid free of Inheritance Tax.
At MyKeyManInsurance we have fully trained advisors ready to explain the advatages of relevant life insurance and are able to email more information to allow you to make a decision. If you are a director of your own company and have a personal term life insurance policy, then its something you should look into. Call us now on 01702 219560.
We use a range of other insurance providers and their products may be more suitable for your needs. These articles are for information only and does not constitute as financial advice in any way.
