Protection
Life cover
A premature death always has financial consequences. The only question is who bears them: your family, your company, or your business partners.
- Who we help
- Anyone with a family, a loan, or a business.
- The tax benefit
- Depending on the structure, to be set up privately or through the company.
What is life cover?
Life cover pays out a specified amount to predefined beneficiaries upon the death of an insured person.
Three situations that call for protection
Your family: income, loan repayment, and inheritance
The first necessity is often protecting the family, or by extension the wider family. The sudden loss of a breadwinner must be financially cushioned. Can the standard of living be maintained? Can the home loan be repaid? And if a significant family estate has been built up in the meantime: is the cash available for the inheritance tax the survivors would have to pay, or does the family risk having to sell assets following a death?
Your company
Your company may also be exposed to death risk. Does the loss of a key figure have consequences for turnover? For the flawless repayment of an investment loan? Are additional resources needed to bridge that difficult period, or to attract a new key figure?
Your business partners
Business partners and co-shareholders would also do well to check what the financial consequences of a premature death of one or more of them would be. What about the pre-emption right on the shares? Is the shareholders' agreement still up to date? Does each of them have the means to exercise any pre-emption right provided for, so that the risk of external shareholders buying into the company can be avoided? And the inheritance tax?
Taking out the right life cover is an art
Our advisors answer these questions for you:
- What amount exactly needs to be covered?
- For how long should the policy be taken out?
- Who will be the policyholder: a natural person or the company?
- What will the taxation of the payout be, and how does that affect the capital to be insured?
- What inheritance tax applies to the payout, and how does that affect the capital to be insured?
- How do we correctly define the beneficiaries?
- What is the best rate on the market?
Who is it for?
Every employee or self-employed person, with or without a company, and also the family members of that person.
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Read all about it in this news article.
Our tips: all causes, sudden death, or accidents only?
Death, all causes
Ordinary life cover insures you for all causes: both illness and accident.
Accident risk only
Sometimes it can be advisable to cover the accident risk only. That is usually cheaper than life cover for all causes, and there are no medical formalities.
Sudden death
In very specific situations, a so-called sudden death insurance is chosen. This covers not only accidents, but also sudden causes of death that are not accidents, for example a heart attack or brain haemorrhage.
Taxation
The premiums paid may be tax deductible, depending on the type of insurance. Premium taxes also differ depending on the type of death cover or the insurance to which it is linked. The taxation of the payout depends on who the policyholder, insured, and beneficiary are, and on the type of insurance. For the taxation of a specific life cover, we refer you to the taxation of the underlying product.
Does this fit your situation?
You will get an honest answer, even if that answer is "no".
Disclaimer: Life Experts provides insurance solutions for self-employed directors, liberal professions, SMEs and large companies. You will find the basic information for each type of solution on this website. With the product descriptions and the product overview on this website, we do not aim to follow a tax or legal classification, but a pragmatic and practical one. A turnover insurance, for instance, is fiscally a company-director insurance. And a death cover or a disability insurance can be taken out within the tax regimes of IPT, VAPZ, POZ, long-term saving, pension saving, and so on.