Contractor Life Cover
Contractor Life Insurance pays your debts and supports your dependants when you die. The policy will settle any outstanding bills with your creditors. For those who survive you, the policy will replace some or all of your income.
In short, contractor life cover offers peace of mind today, for whatever tomorrow brings.
What are the hazards for the freelancer?
As an independent professional, your potential rewards are greater than working as an employee. But do consider that you surrender ‘death in service benefit’ enjoyed by salaried employees.
It's only a small consideration, but one that's often overlooked. Without protection in place, you could expose your loved ones to your business risk. It's not something you'd do on purpose, of course. But there's little recourse your family could take after the event.
What is the solution?
With the reassurance of life cover arranged through Freelancer Financials, you can relax. Come what may, you can rest easy knowing that your family has financial security.
The ways you and your business operate are unique. Your life cover quote should reflect that, but most off-the-shelf policies don't. We'll scour the entire market to ensure that you get the right cover at the right price.
As most insurers tailor traditional life cover to permies, they don't fit the bill. Having inept life cover is worse than having no cover at all. You think you're covered, but when it comes to the crunch, the policy will fall short.
It's imperative that you find life insurance that befits the contractor lifestyle. It will appear in one of two forms: ‘term cover’ or ‘whole of life’. This is an overview of what both of those policies mean for you:
Term Cover for Contractors
Term cover insurance works by paying out a cash lump sum in the event of one of two events:
- upon your death;
- upon diagnosis of a terminal illness.
As the name suggests, this type of cover is for a set term. It has a start date and an end date. Either of the conditions above must happen during the plan term to trigger the pay out.
The size of the payout will depend upon you. You decide how much you want cover for and then make regular payments to that end.
Insurers design term cover to help protect your family’s future lifestyle. As such, this type of plan has no cash-in value at any time.
Rates for this type of contractor cover can be competitive. But there are circumstances that will affect the cost of your premium:
- the age you take out the policy;
- if you smoke;
- even gender may impact on how much you pay.
Our personalised service ensures that you get the right cover.
A Whole Life Cover
Whole life cover offers lifelong cover, again as the name suggests. It's not just for a limited period, like term cover.
By choosing this type of policy, you guarantee your dependants a payout. For absolute peace of mind, this type of cover offers the greatest financial security.
Again, your unique circumstances dictate how much your premiums will cost. Our advisors can walk you through the process and get the right cover for you and your family.
How to get your limited company to pay for your life cover
Many contractors operating through a limited company are most likely missing a trick. You don't have to pay the premiums from your personal account with post tax income.
Paying out of your own pocket has a considerable impact on the cost of your cover. This is especially true for higher rate taxpayers.
Due to recent changes in legislation we can show you how to avoid this tax trap. Instead, you can draw on your Limited company to pay the cover on your behalf. This is a savvy move, as:
- premiums paid by the company are not treated as income;
- premiums may be allowable as a business expense, depending upon your setup;
- benefits are often paid free of income and inheritance tax to your dependants.
Larger companies have enjoyed these perks for many years through group life cover schemes. With these new types of life cover, contractors can now enjoy similar protection. If you operate through a limited company and need new or improved life cover, go here.