Contractor Life Insurance
Since becoming a contractor you are likely to have lost the benefit of death in service cover which you would have had in place with a large employer. Many employees will not ever realise the value of this unseen perk of salaried employment, but since you have left that employers safety net you will need to think about getting adequate protection in place.
Although organising Life Insurance is not something that we like to have to think about, ensuring that your loved ones are protected in the event that the worst should happen to you is essential for peace of mind and your dependant’s future.
Should the worst happen, your contractor Life Insurance policy will pay out a tax free lump sum to your dependants. This can be used in any way they choose such as paying off the mortgage or other debt, or simply providing financial back up. If you are concerned about how your family would handle a large lump sum of money, you can chose a family income benefit policy which will pay an agreed monthly sum for a specified period i.e. until your children turn 18. There is a policy to suit every contractor, which can be tailored to your individual requirements.
There are two main types of Life Insurance:
Term cover – a term policy will, as the name suggests, provide simple low cost protection for a given period after which time the policy will lapse without value. Rates can be very competitive and will be influenced by your age on taking out the cover, whether you smoke and any medical history.
Whole Life – with this type of plan you know that the insurer will be paying out at some time, although this cover is likely to be more expensive. You will die at some stage and the insurer will have to pay out even if you are 90 years old, but only as long as you have kept the policy going.
There are many different options within these two types of policy and your experienced protection Adviser will talk you through what might work best for you once they have learned more about your requirements.
We will search the whole of the market for you when looking for your perfect contractor Life Insurance, so you can rest assured that you are getting the best cover available to you.
Contracting through a limited company? Ask our Advisers about tax efficient Relevant Life Cover
To find out more about life cover, give our award winning protection advisers a call on 0333 370 8888 or fill in a contact form and we will be in touch.