Relevant Life Maximum Sum Assured Tool

Posted on February 18th, 2013 in All, Tools.
A common query that I get from clients is how much cover can they have through a relevant life policy. Most company directors take a small basic salary usually just below the basic rate tax threshold. The rest of their remuneration comes in the form of dividends and for some no director employees they may get bonuses or overtime. Many clients want to get as much cover as possible through these tax efficient policies but many assume that dividends cannot be taken into account.
However the providers will take into account all the remuneration as a total so basic plus dividends plus bonuses etc. Over the years the income multiples that can be used has increased from provider to provider. The range varies from 10 times multiples to 25 times multiples and depends from providers to provider by age range.
The simple tool below can be used to work out the maximum sum assured for your own situation. This is based on my understanding of the providers literature and is subject to change.
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Damian Youell

I am a specialist at helping company directors of small limited companies. I can help with protection solutions such as relevant life policies and key person insurance. I can also help with shareholder protection solutions.

www.relevantlifepolicy.com is a trading style of Rosemount Financial Solutions Ltd who is an appointed representative of Intrinsic Mortgage Planning Limited and of Intrinsic Financial Planning Limited who are authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA Register (http://www.fca.org.uk/register) under reference 440703 and 440718

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

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