Government policies

If you buy insurance in the United Kingdom you can choose which law may apply to your policy. Unless you and the insurer make a written agreement saying otherwise before the policy is issued, the law of England and Wales will apply to your insurance. Unless otherwise agreed, the contractual terms of your policy, all prior information and all communications will be in English.

For individual plans the income is currently (May 2004) paid free of income tax. The premiums paid do not qualify for tax relief.

Where a close limited company takes out cover for an employee the income paid to the company is liable for income tax and national insurance. The premiums paid by the company normally qualify for corporation tax relief and are taxed as a benefit in kind for the employee.

Tax law is subject to change and you should consult professional advice to clarify your position.