Life Insurance is a set amount of money that is reserved to be given to a client’s loved ones in case of death. It secures the finances of the family in case a certain event compromises the income stream of the family members involved. There are also different forms of insurance plans for proprietors of businesses, namely:
Director Life Insurance
This is different from personal life insurance because of the exclusion of taxes and the business itself is paying its continuity. Also, Director Life Insurance is way cheaper than personal life insurance depending on a number of factors such as taxability or its eligibility to be treated as a business expense that is tax deductible, exclusion from the lifetime allowance or pension.
Relevant Life Insurance
This allows the director client to ensure his remuneration multiple times. There will be a trust set up to which the benefit is deposited in order to keep it from issues regarding taxes.
Group Life Insurance
This is suitable for large companies to offer to their employees. Small businesses aren’t legible for this type.
The client may choose to include in his policy the Critical Illness Cover or the Directors Income Protection, which is more relevant for the director’s case. Still, it is best to talk to a financial adviser about this.