What is it?
If you are a director of a limited company, be it a one person company or multiple directors, you do not get the death in service benefits you would expect as an employee.
If you take out a specific type of life assurance via your company it can act as a death in service benefit payable to your family if you die and it is tax efficient as it is paid as a business expense.
Why does my business need it?
It is tax efficient and offers your family further protection in the event of your death. There are no national insurance implications. Tax-free benefits to your dependents.
Company Director insurance protects against:
- Your beneficiaries get a lump sum outside of your estate so not subject to inheritance tax.
- You can take it with you if you leave the business (you may not get the same tax benefits though).