Life Cover Insurance for IT Contractors in the UK
Contractor Life Cover
Insurances like life cover are a must for IT Contractors.
As a contractor you lack the employee package of ‘death in service‘ benefits. So the responsibility falls on you personally to protect family and dependents.
You can cover yourself for a fixed term (i.e. until children will be grown up/a debt is repaid). Or you can cover yourself for your entire life (Whole of life – WOL).
You also have the option of a decreasing amount of cover (decreasing Term Assurance, DTA) that will reduce in line with a reduced liability – i.e. a repayment mortgage or a level amount (level term assurance, LTA).
Pays Lump Sum
Ordinarily life cover will pay a lump sum. However, if you have reservations about the ability of a dependent to cope with a one off payment you may prefer to insure for a set term. You would have benefits payable annually if you die within the term.
In this way it may be easier to for the beneficiary to budget. This scheme is known as a family income benefit (FIB).
In addition, benefits can be set at an increasing amount on any of the above policies. That’s so that they will keep pace with inflation.
‘Waiver of premium’ can ensure premiums are paid by the insurer if you are unable to work through sickness after 6 months.
Please fill in the finder below. Let us know your requirements and we will get back to you shortly with some recommendations.
Since April ‘06 the new pensions simplification regime has allowed far greater scope to benefit from tax relief of pension term assurance. In many cases getting the taxman to subsidise your life cover costs can save significant amounts of money. Much of the premiums can be clawed back from the exchequer using these new rule. Alos, existing cover could well be replaced with a far cheaper option
Life Cover Finder
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