A cookie is a small file which asks permission to be placed on your computer’s hard drive. Once you agree, the file is added and the cookie helps analyse web traffic or lets you know when you visit a particular site. Cookies allow web applications to respond to you as an individual. Read our Cookie Policy

Life Policies

A life policy is an alternative to a traditional life insurance policy. A life policy is paid, by the employer, for the employees and is designed to pay a lump sum if the employee is diagnosed with a terminal illness or dies. The policy is a highly tax-efficient way of saving money on traditional life insurance and offering benefits to key employees.

Life policies are designed for company directors wishing to provide their own “death in service” benefits without having to rollout the scheme for all employees, as used to be the case with group life insurance. The majority of company directors will have some form of personal life insurance that is paid for personally through pre-taxed income; a life policy scheme would save a higher-rate taxpayer 49% on the cost of their life insurance.

The savings themselves are akin to most other types of life insurance with the added benefit of being tax-efficient and allowing an employer to provide benefits for their staff. Most company directors, and many accountants, have never heard of the life plan so it is an underused asset that could save money, and protect valued employees, in many businesses.

There are a number of life policy providers including Scottish Provident, Zurich, AEGON, Legal & General, Pru Protect, Bright Grey and LV. Like most traditional life insurance policies, the lump sum payment is based on a multiple of remuneration. The multiples will vary between providers and are dependent on the age of the individual.

At M.D. Beckett Financial Services we are totally committed to working in a partnership with you to save you money and benefit your key employees. We can advise and guide you through the process of choosing the best life policy package for yourself, your employees and your business.

Contact us to find out more