10th January 2019
As a Contractor, it’s important to review the protection you have in place annually. Do the protection policies you have in place meet all of your needs? Are you paying too much or not enough to cover what you need? It is especially important when you’re self-employed to be on top of your policies and review your protection regularly as you don’t enjoy the benefits of sick pay or health insurance that some employers offer. This checklist will help you to understand if you need to review the protection you have in place and check in with an adviser. If not – great! You can enjoy the peace of mind that you are appropriately covered for all the scenarios you need to be.
If you have purchased a bigger home, check your Life Insurance policy to see if the payout will still cover the cost of the mortgage. Similarly, if you have downsized, you may not need as big of a payout as before.
You may need to update your Life Insurance cover to add another beneficiary.
Now that it’s just you and your partner, are you looking to find a smaller property or retire early? This will affect all your personal insurances.
This could have a dramatic impact on your insurance options. It could reduce the amount you pay for both Life Insurance and Critical Illness Insurance.
Similar to the one above, if you have gained or lost weight your Life Insurance, Critical Illness Insurance and potentially Private Health Care premium may go up or down.
Whether you’re earning more or less, make sure to check your Income Protection so if you do fall ill you can keep up with your payments until you’re ready to return back to work.
Check to see if they offer any benefits so you’re not paying for any duplicate insurance.
If this is the case you could save tax by paying for your life insurance through your company as a business expense. You would still receive the same benefits (or more) by switching to Relevant Life Insurance and save 19% corporation tax.
If you’re thinking about moving away from Contracting and into regular employed work, check your company benefits to see what they do and don’t include.
If you are planning to retire and go on holiday, double check your travel insurance policy documents. Some provider’s only cover you up to a certain age. You may need to purchase an age extension.
If you have just started contracting, you will no longer receive the same benefits as before. This includes sick pay or death-in-service. By having an Income Protection policy as well as Life Insurance you could be saving yourself and your family money and stress if anything were to happen to you.
If, after reading this checklist, you’re wondering whether you have the right level of protection and would like to set up a review of the protection you have, request an appointment with one of our expert advisers who will be happy to help. Get in touch.
All content is accurate at the time of publication
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