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Limited Company, advice on life insurance please

(8 Posts)
Merguez Tue 19-Jan-16 19:42:27

My business is set up as a LimitedCcompany, but I am the sole director and employee, for tax reasons.

I need to set up a new life insurance policy as my previous one expired. I am getting conflicting advice - accountant says I can only do this through the business if the company is the beneficiary (rather than next of kin) which would have tax implications - but that does not seem to make sense as I am sure it is commonplace for companies to provide life insurance for their employees where the family benefits.

Anyone know the correct position or where I can seek advice please?


OP’s posts: |
PurpleWithRed Tue 19-Jan-16 19:43:33

Try Simply Business, who sort my business insurance cover.

Merguez Tue 19-Jan-16 20:24:34

Thanks for the advice - but I already have Professional Indemnity Insurance with Simply Business.

I don't think they do Life Insurance - it's a completely different thing.

OP’s posts: |
gamingmum Wed 20-Jan-16 13:57:43

hi, I can probably help you with this as myself and my husband own a small Financial Advice firm which is also set up as a Ltd Company so have gone through the same steps as you are looking for. We have an add on mums net for business purposes but if you wish to DM me to have a discussion either via here or happy to give you a call to speak direct.

AdventureMathematical Wed 20-Jan-16 15:10:19

Hi, I am the aforementioned husband. there are a couple of ways of doing it and you should take advice as to the best way for your circumstances. There are some restrictions though, it needs to 'look right' otherwise HMRC would want to tax any claim pay out so make sure you speak to a financial adviser or protection specialist. If only we knew where to find one...

Merguez Wed 20-Jan-16 20:07:15

Thank you gamingmum and AdventureMathematical.

The conflicting advice was between my IFA and my accountant & having looked into it further I think the IFA was right & is recommending the right policy for me.

Your business looks great though, and if I didn't already have an IFA I would definitely look into using your services. Best of luck, and thank you for replying.

OP’s posts: |
NeuNewNouveau Wed 20-Jan-16 20:24:13

There are some policies where the company can pay and it is tax deductible such as a 'relevant life' policy. The beneficiaries are the family however the terms and premiums are often not as good as a standard life policy and may well outweigh the tax benefits.

Your accountant may be thinking of key person insurance which is aimed at the business protecting itself for the loss of a 'key person'.

It is a shame the previous posters were advertising their business rather than giving some basic free facts openly.

AdventureMathematical Wed 20-Jan-16 20:45:27

Great stuff! In that case get your adviser to speak to your accountant to make sure it is all recorded correctly and you should be all good.

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