Relevant life cover for contractors

Are you a contractor or self-employed professional looking for Death in Service benefits? Cleerly is here to help

Contractor relevant life cover specialists

Talk to the experts

Many contractors trading via their own limited companies would love to be able to provide themselves with a Death in Service benefit, meaning any dependents would receive a cash lump sum of up to 15 times their income; if the contractor died or become terminally ill.  

If you would like to find out more about relevant life insurance, please don't hesitate to call the Cleerly team on 02394 212912 or request a callback.

Relevant life insurance protection

Securing peace of mind now and in the future

Relevant life cover for contractors is a form of death in service policy that is set up and paid for by a limited company and pays out a tax-free sum to beneficiaries upon the death (or diagnosis of a terminal illness) of the person insured.

When looking at relevant life policies for contractors, as with traditional life insurance, an individual is assessed based on how much cover is required, their health, family history, age and lifestyle. Whilst premiums are paid for by the business, if the insured person dies in service during the policy term, a tax-free payout will be given to the individual's beneficiaries. 

Ensuring your loved ones are protected is vitally important. This is where Cleerly can help. With over 15 years' experience, our relevant life cover specialists can find the right policy for you and your unique financial circumstances, providing straightforward, jargon-free advice along the way.

Cleerly is here to help

Want to discuss your relevant life cover options with experts who care?

Contractor relevant life insurance FAQs

There are many good reasons to take out a relevant life insurance plan, such as:

  • Premiums are paid by the company, not the individual.
  • Premiums are classed as a business expense and are therefore tax-deductible.
  • Payouts aren't subject to inheritance tax.
  • Maximum cover is typically up to £10million.
  • Payouts are not judged to be a benefit in kind.
  • Provides you and your family with peace of mind.

The amount of cover you can get with relevant life insurance for contractors depends on factors such as your income and age, but with most policies, you would normally expect beneficiaries to receive a tax-free lump sum of 15 times your total remuneration.

However, some insurers may offer more or less cover depending on your circumstances, so contact Cleerly today to find out how we can help find the best relevant life cover plans for you.

Relevant life insurance is different from personal life insurance in two main ways. First, relevant life cover is taken out by the contractor’s limited company, not by the contractor personally. This means that the company pays the premiums and the benefit is paid to the contractor’s family in case of death or terminal illness. Second, relevant life insurance is tax-efficient, as the premiums are deductible as a business expense and the benefit is not subject to income tax or inheritance tax. Personal life insurance, on the other hand, is paid for by the contractor after tax and the benefit may be subject to tax, depending on the circumstances.

Eligibility can differ from insurer to insurer, but generally, contractors under the age of 75 who draw income from their own limited company are eligible for relevant life insurance. This includes both sole directors and those with employees.

The maximum term for most relevant life policies is 40 years.

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