Life cover for the self-employed

Protect your business and loved ones

Life cover probably isn’t the first thing you’ll think of as you take the exciting plunge into self-employment, but it could be the most important.

As a freelancer, contractor, or small business owner, you should be prepared for whatever happens. We have access to a range of products to help protect your family, business, mortgage, or yourself against illness or unexpected events. Our friendly advisors are here to help you cut through the jargon and give you and your loved ones peace of mind.

Call us today on 0333 311 0800 for a free consultation

Image of a man happily signing a contract

We understand your personal and business needs

Our Life Cover advisors have been working with small businesses and contractors for 25 years, and know what sort of problems or issues you may
be facing.

Save money on your premiums

We have access to a range of products that can be tailored to suit you and or your business — see below for more details.

As well as great value products, we can also advise on how you can claim certain business protection costs as a business expense, saving you money on tax.

Not sure what you need?

We want to make sure you get the right advice - on your terms. By scheduling a free advice consultation with our advisory team, you’ll be able to find what’s best for you and make sure you have the right level of protection.

Book a free consultation

Find the right product for you

Life Insurance

Life Insurance, also known as Term Assurance, is a type of insurance contract which pays out a tax-free lump sum to your dependants should you pass away during the term of the contract. The cost of a policy is determined by a number of factors including your age, health and lifestyle.

Critical Illness Cover

Critical Illness Cover is a long-term insurance policy which covers a number of serious illnesses listed within a policy. If you get one of these illnesses, a critical illness policy will pay out a tax-free, one-off payment.

Income Protection

Income Protection insurance (sometimes known as Permanent Health Insurance) is a long-term insurance policy designed to help you if you can’t work because you’re ill or injured. It pays out a regular income until the end of the term or you return to work whichever is earlier.

Family Income Benefit

Family Income Benefit is a special type of life insurance policy. Generally, with life insurance, your loved ones will receive a lump sum payout from your policy when you die. With family income benefit, your loved ones will instead be paid a regular income for a set period.

Gift Inter Vivos

A Gift Inter Vivos life assurance policy is one that provides a lump sum to cover the potential Inheritance Tax (IHT) liability that could arise if the donor of a gift dies within seven years of making the gift. The lump-sum provided is in line with the potential IHT liability and reduces in line with taper relief available

Relevant Life Plan

A Relevant Life Plan is a term assurance plan available to employers to provide an individual death in service benefit for an employee. It’s designed to pay a lump sum if the person covered dies or is diagnosed with a terminal illness, whilst employed during the term. A Relevant Life Plan is paid for by the employer.

Key Person Insurance

Key Person Insurance is a policy taken out by a business to insure their most valuable employees (key people). The policy is designed to protect the company from the financial impacts of losing their key people through death or illness.

Shareholder Protection Insurance

Shareholder Protection Insurance ensures that family members of the deceased shareholder are guaranteed a sum of money at a fair and previously agreed price when the shares are purchased. Shareholder protection doesn’t just have to cover death, it could also cover critical illness.

Loan Protection Insurance

Loan protection insurance can help business owners meet their monthly debts up to a predetermined amount. The benefit of the policy is normally to protect the business against a loan or commercial mortgage. In the event of the death/diagnosis of critical illness of the life assured a lump sum is payable to enable an overdraft, business loan or commercial mortgage to be repaid.

Executive Income Protection

Executive Income Protection is a specialist protection that covers both your salary and dividends paid by your company under which it is possible to cover up to 80% of your earnings.

Frequently asked questions about Life Cover

How do I take out Life Cover?


Firstly you’ll need to speak to a Crunch advisor who’ll be able to recommend the right level of cover for your specific circumstances and advise on whether you could save money by setting up your cover through your business, rather than personally. We’ll just ask you a few questions, and the whole process can be completed in no time at all.

Call us on 0333 311 0800 or request a call back.

What is the cost of Life Insurance?


Life Insurance is usually paid monthly and the premium (cost to you) is based on your current age, the amount of cover required and the number of years it will run. We will always take the time to discuss your needs and circumstances so that we can recommend the level of cover that is right for you at a premium that is affordable and meets your budget.

Call us on 0333 311 0800 or request a call back to get a personal quote.

What is “Relevant” Life Cover


There can be large tax benefits if your limited company pays for the Life Cover of a Director or Employee – this can literally save you up to 52% of the premium. This type of policy is known as Relevant Life Cover (RLC). It’s still just a life insurance policy, however, it’s set up by an employer rather than by the individual.

Is Relevant Life Cover tax-deductible?


Yes! As Relevant Life Cover premiums are paid for by the business, they’re fully tax-deductible as a business expense.

Who is eligible for a Relevant Life Cover policy?


To be eligible, the person with the policy must be an employee of the business, including directors taxed on an employment income basis.

Can a sole trader have a Relevant Life Cover policy?


Yes, but not for yourself, only if your business has employees and you’re applying on behalf of one of your employees. Sole traders are not employees of their business and If you aren’t an employee yourself, you can’t be covered under a Relevant Life Cover policy. You can still have a Life Insurance policy but you will not receive the tax benefits of a Relevant Life Cover policy.

How much money could choosing a Relevant Life Policy save me?


Company directors paying 40% personal income tax could save up to 52% on their life insurance premiums (up to a 36% saving for those on a 20% tax rate) when compared to having personal life cover in place. Someone with a £50 a month personal Life Cover policy could save £7,800 over a 25-year term by taking out Relevant Life Cover instead.

Call us on 0333 311 0800 or request a call back to get a personal quote

How can I protect my income as a business owner?


There are a couple of avenues you can explore here, including Income Protection insurance and Critical Illness Cover. If you'd like more information on either of these options, check out our Knowledge article on the subject of protecting your income at the link below.

For Life Insurance and/or Critical Illness Cover: The policy has no cash-in value at any time. If you don’t pay your premiums on time your cover will stop, your benefit will end and you’ll get nothing back.

The policy will end if we pay out the benefit amount but if the benefit amount has not been paid out by the end of the selected term, the policy will end and you’ll get nothing back.

If the benefit is to cover a repayment mortgage, we will decrease the benefit amount each month assuming a fixed rate of interest of 10% a year. There may be insufficient funds to repay the loan if the interest rate on the mortgage exceeds 10% or the loan is increased or extended.

E-Crunch Ltd is an Appointed Representative of Seico Insurance & Mortgages Limited which is authorised and regulated by the Financial Conduct Authority for mortgage and insurance business only and is entered on the Financial Services Register under reference 300024.

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