Company Directors and Life Insurance
I often meet Company Directors in the course of work that I do. Within our discussions, I ask if they have personal life insurance and quite often, I find that if they do, they pay for it through their personal bank account.
Many directors are unaware that the company can actually pay for their life insurance. This means that the company pays the monthly contributions and the premiums, to insure the life of the director. With this type of plan, we write it into a trust. This means that the director’s spouse or children become the beneficiaries of the trust.
The benefit of this, is that should something happen to the director, it doesn’t fall into their estate for inheritance tax purposes. The other big benefit of this type of cover is that the director can fully offset it against their corporation tax bill and its not classed as a benefit in kind.
If you are a company director or you know someone who is a director with a personal life insurance policy, it’s always worth me having a chat with them.
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