Securing life insurance doesn’t have to be confusing. Read…
As of 2023, it’s estimated that there are 94,545 contractors working in just the construction sector alone.
With this in mind, most insurers are used to providing life cover to UK contractors.
Whether you’re a contractor in construction, IT, engineering, project management or design, there’s a life insurance policy to meet your needs.
At Reassured we can help you compare quotes from some of the UK’s best life insurance providers to find suitable quotes for contractors.
We can also provide you with all the information you need, helping you make an informed decision.
So, why not use our award-winning broker service to conduct a life insurance comparison? Simply get in touch to get started today.
Keep reading this in-depth contractor life insurance guide, we’ll be covering:
Contractor life insurance is simply a life insurance policy taken out by a contractor. There’s no specific life insurance policy designed for contractors.
Contractor life insurance can refer to one of the following:
Although we can’t currently arrange relevant life insurance here at Reassured, we can help you compare multiple personal life insurance policies (free of charge).
Whether you need life insurance as a contractor will ultimately depend on your personal circumstances.
If you have dependents who rely on your income, securing some form of cover is likely to be beneficial to help protect their financial future.
Those in employment often benefit from death in service, which will pay out to loved ones if the employee passes away while in service with their employer.
However, being self-employed means you won’t be eligible for benefits such as these.
Life insurance can allow you have your own personal cover to protect your loved ones, should the worst happen.
Alternatively, if you own a limited company with employees, a relevant life insurance policy could allow you to provide them with financial protection.
Particularly for contractors with occupations that could be considered as risky (such as those that work on site), having adequate protection is key in ensuring the financial future of your loved ones.
At Reassured, our expert team can talk through your needs and help you establish what’s right for you.
We have a full life insurance for self-employed guide if you require more information »
The best life insurance for contractors will depend on a variety of factors, including:
It’s essential to be aware of all your options before securing a policy, this way you can ensure you’re getting the right policy to meet your needs.
Why not use our award-winning broker service to compare life insurance quotes? We can help contractors find a great deal.
There are a range of life insurance policies available to contractors, the right one for you will depend on your occupation, what you’d like to cover and your budget.
Level term life insurance will cover you for a set period and will pay out if you pass away during this time.
The pay out for your loved ones remains fixed throughout the policy term.
This means it holds its value and won’t change overtime.
Due to the large pay out potential, level term life insurance is often used to help protect an interest-only mortgage, other large debts and/or family living costs.
You could choose a term length that ends when you reach retirement age, to help replace your income for your loved ones should you pass away.
Compare level term life insurance from some of the UK’s best insurers through Reassured.
Simply get in touch for your fee-free quotes.
Decreasing term life insurance will cover you for a set period and will pay out if you pass away during this time.
The pay out for your loved ones will reduce throughout the policy term.
For this reason, it’s often used to help protect a repayment mortgage as the sum assured can mirror your remaining mortgage balance and reduce at the same rate.
This reduction will either be monthly or annually depending on your policy and insurer.
Decreasing term life insurance is typically the cheapest form of cover, ideal for those on a tight budget.
Reassured can help you compare decreasing term life insurance from top UK insurers.
A friendly member of our team can provide you with our best quotes, simply get in touch.
Whole of life insurance will cover you for the rest of your life.
This means a pay out is guaranteed to your loved ones when you pass away (not if).
As a pay out is guaranteed, whole of life insurance is often used to help cover funeral costs and/or provide an inheritance.
If you have a large estate, it could also allow you to leave a sum to help loved ones cover inheritance tax.
However, you’ll be required to pay premiums for the rest of your life, which could be costly over a long period.
If you think whole of life insurance is right for you, our expert team can help you find an affordable deal.
We can compare quotes and provide you with our best deals. Simply get in touch.
Family income benefit is an alternative form of life insurance.
Rather than a lump sum payment, the policy will pay out in monthly payments (like an income).
If you’re the main or sole breadwinner of the family, this form of cover could help replace your income should the worst happen.
Similar to term life insurance, you’ll be covered for a set period and the pay outs will commence if you pass away during this time.
After your passing, your loved ones will receive payments for the remainder of the policy term. For example, if your policy term is 30 years and you pass away 5 years into the policy, it will pay out for the remaining 25 years.
You may wish to choose a term length that aligns with your working life to help protect your income.
Compare family income benefit, free of charge, through Reassured Advice.
Relevant life insurance is a policy which can be taken out by contractors with their own limited company.
This can allow you to provide life cover to an employee. Any employee can benefit from this policy, including the company director.
As the policy is secured and paid for by your business, the premiums can be classed as a business expense (making them tax deductible).
As with a standard life insurance policy, a lump sum pay out will be made to the insured persons family. However, rather than choosing a sum assured, the cover amount is often based on income.
The policy will be written in trust, which can detach the pay out from the insured person’s estate, meaning 40% inheritance tax is avoided or minimised for loved ones.
Relevant life insurance isn’t something that’s currently offered by Reassured. But we can help you compare personal life insurance plans from top UK providers.
The price you pay for life insurance as a contractor will depend on your personal circumstances.
During the application you’ll be required to provide insurers with key information, including:
This, along with details about your policy will allow insurers to accurately assess your level of risk and calculate your monthly life insurance premium accordingly.
Depending on your line of work, you may need to answer further questions to establish whether your occupation is high-risk.
For example, if you work in construction and are regularly working from height or around heavy/dangerous machinery you may pay more than an IT contractor who works in an office.
Rest assured it can still be possible to find affordable cover and Reassured can help you to do this.
We can compare quotes from leading mainstream providers and specialist insurers to find you our best quotes.
The table below shows example pricing for a contractor (with a low-risk occupation), who is a non-smoker in good health. Quotes are based on a level term life insurance policy with a 20-year term for £150,000 of cover:
|Age||Price per month|
Save time and money by comparing quotes through Reassured. A friendly member of our team is waiting to find you a fantastic deal.
Can I pay for life insurance through my business?
For contractors that secure a relevant life insurance policy, you’ll be able to pay for the policy through your business.
This is because the policy is taken out by a business to provide life cover to an employee (this could be any employee, including the director of the limited company).
A standard personal policy, such as term or whole of life insurance, can’t be purchased through your business.
Is life insurance tax deductible?
A relevant life insurance policy can be tax-deductible for contractors with their own limited company.
This is because a relevant life insurance policy is taken out and paid for by your limited company.
As the premiums will be paid for by the business, they can be claimed as a business expense making then tax-deductible.
Can sole traders secure relevant life insurance?
No, in order to secure relevant life insurance, you’ll need a company set up to take out and pay for the policy.
As a sole trader, you’ll be able to secure a personal life insurance policy instead.
What if my occupation is considered as high-risk?
Even if you’re occupation is considered as high-risk by insurers, it can still be possible to secure cover.
It’s unlikely you’ll be declined due to your occupation. What’s more likely is that your premiums will be inflated to compensate for the increased risk.
It should still be possible to secure an affordable deal through mainstream providers.
However, if other high-risk factors are identified (for example, a pre-existing medical condition) it could be beneficial to secure cover through a specialist insurer.
These are providers who specialise in offering cover to high-risk or non-standard applicants.
Reassured can save you time and money by comparing both mainstream and specialist insurers - allowing you to find suitable cover for your personal circumstances.
Can contractor life insurance be written in trust?
Yes, as a contractor, you can write your life insurance policy in trust.
Writing your policy in trust is a legal process which could detach your policy from your estate, allowing your loved ones to make the most of the pay out.
There are three main benefits to writing your life insurance policy in trust:
At Reassured we have a free trust writing service available with most of the policies we sell.
Our helpful team will be able to provide you with all the information you need to know and guide you through the process.
Read our complete life insurance in trust guide for more information about this free option »
Reassured can help UK contractors find affordable life insurance.
We do this by comparing quotes from top insurers and smaller specialists and presenting you with our best deals.
Our life insurance broker service is award-winning and FCA-regulated and, best of all, we don’t charge a fee for our quotes.
Life insurance through Reassured starts from just 20p a day, so why not get in touch?
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Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!Mrs M Rushworth
Very professional and reassuring. Life insurance sorted in about 10 minutes.Stephen Davies
very courteous and friendly. Polite professional and empathic.Stedroy Fenton
Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.Piotr Stepien
Really attentive during the call, good clear guidance throughout. Well done.Michael Reynolds
Amazing service quick fast and easy and Joey was a star on the phone really help me thanks.Sera Woolley
I made the right choice and now I feel relieved that I did.glyn
Really genuine kind and compassionate team with great knowledge and friendly approach highly recommend them!Katelia Merritt
I must say Jake took me through every step and was brilliant, recommend them anytime.Allan Green
Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.Jenny Berry