Life Insurance

Nikster73 Forumite Posts: 112
Third Anniversary 10 Posts
We are currently in the process of taking out a life insurance policy.

We are both Company Directors of a LTD company.  The Broker has advised we opt for a level term policy and pay the monthly payment through the business, as we will not pay tax on it.

Is this the correct way to go forward?


  • DullGreyGuy
    DullGreyGuy Forumite Posts: 6,282
    1,000 Posts First Anniversary Name Dropper
    Why dont you trust your broker?

    Assuming your business is profitable then relevant life insurance will tend to be cheaper overall but it also depends on what your business plans are... if you intend to pack it in before your life insurance will end or hope to sell the business then it may not be a good idea.

    As to level term, that depends on what you are intending the insurance to cover
  • dunstonh
    dunstonh Forumite Posts: 114,289
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is this the correct way to go forward?
    If the broker is an adviser then yes.  Advisers are required to give advice and suitable solutions to fit your scenario.    

    There are potential negatives of the company paying the premium but for many people, it makes sense.  But your adviser should cover the pros and cons.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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