This is a Level term life policy that a Ltd company director can take out for themselves or an employee of the business.

This is especially beneficial for the majority of Contractors who are one person Ltd businesses as they can pay for the cover direct from the business.

The policy is applied and paid for by the business, and is written into trust from the outset so it pays out a lump sum to the employee or their beneficiaries if they die or are diagnosed with a terminal illness while employed during the policy term.

The Director can claim tax relief on the premiums as long as the local inspector of taxes is happy the the premiums are “wholly and exclusively for the purpose of trade” as part of the employees remuneration.