business man and woman

Save money on your Life cover and be more Tax Efficient!

If, once you’ve read this case study, you’d like to talk through your situation, please call 0800 644 4468 

Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Our Clients

Mr and Mrs J contacted us, as they recently moved back to the UK. Mr J already had a life policy from an overseas company, but Mrs J’s policy had expired. Both were very keen to take out a policy for Mrs J as she was totally uninsured should the worst happen.

Mr J was still happy with his cover and was planning to keep it running. However, when we discussed their circumstances it transpired that they have their own limited company.

We made our clients aware of the option of Relevant life cover.

What is Relevant Life Cover?

As the owner of a limited company, you can take out a relevant life policy. This covers your own life and will pay a sum to your family/dependants if you pass away or are diagnosed with a terminal illness.

The policy is paid for by the business, which can mean a number of advantages compared to a normal personal life insurance policy. Most significantly, it can be tax efficient and result in savings of up to 50% on the premiums, depending on your tax band.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of tax relief depends on individual circumstances.

The Outcome

After speaking to his accountant, Mr J decided to take out a relevant life policy for Mrs J.  He also decided to change his personal policy to a relevant life one because he was so impressed with the lower premiums available for the same level of cover. Compared to his personal life cover, the premium was much more cost effective and he would also make further savings due to the tax efficiency.

The relevant life polices we arranged:
• For Mr J A level term life or earlier terminal illness policy which offers a sum assured of £1,500,000 (with index linked option) and provides cover until the age of 70 the monthly premium is £147.79 before any savings
• For Mrs J A level term life or earlier terminal illness policy which offers a sum assured of £1,000,000 and provides cover until the age of 70 the monthly premium is £138.90 before any savings.

Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

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Next steps

Whilst you are welcome to get a quote on-line we would recommend you talk to one of our advisers.

Any quote that your adviser provides you with will take into account to your circumstances, your medical history, as well as your budget!

An on-line quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof.

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Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer with a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

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