In essence, the whole idea of life insurance is to pay off your debts and support your dependants by replacing some or all of your income in the event of your death. A life insurance policy will provide peace of mind for both you and your loved ones.

What are the hazards for the freelancer?

The greater potential rewards of being a freelancer are weighed against the 'death in service benefit' that often arises as one of the perks of long-term salaried employment. Hence the coverage and protection that is a feature of permanent work does not apply to the life of the freelancer.

What is the solution?

With the reassurance of life cover arranged by Freelancer Financials you can relax knowing your family would be able to cope financially. Freelancer Financials will search the entire market to ensure that you get the right cover at the lowest possible price.

Life insurance generally appears in two forms: 'term cover' and 'whole of life' as shown below.

Term cover

Term cover insurance works by paying out a cash lump sum in the event of your death, or diagnosis of a terminal illness during the plan term, in exchange for regular payments from you. Life Insurance is designed to help protect your family's future lifestyle. The plan has no cash-in value at any time. Rates can be very competitive and will be influenced by your age on taking out the cover, whether you smoke and whether you are male or female.

A whole life cover

A whole life cover plan provides you with lifelong cover, not just for a limited period such as term insurance. This means that your dependants are guaranteed a payout. If you want to make sure your loved ones are financially secure after you die, this policy provides security and peace of mind.

How to get your limited company to pay for your life Cover

Most contractors operating through a limited company will most likely be paying for their life cover from their personal bank account using post tax income. This increases the cost of your cover considerably, especially if you are a higher rate taxpayer.

However, due to recent changes in legislation we can show you how to avoid this tax trap and get your Limited company to pay for the cover.

• Premiums paid by the company are not treated as income
• Premiums may be allowable as a business expense
• Benefits are normally paid free of income and inheritance tax to your dependants.

Larger companies have enjoyed these perks for many years. This benefit is now also available to contractors operating through Ltd companies so if you would like more details on this valuable scheme then click here for full details.