Relevant life cover, also known as a relevant life plan, is a form of business insurance that provides a payout for employees in cases of death in service. It is a lesser known life insurance policy and take up is quite small, but it can be one of the more beneficial plans as it can provide large savings.
How does it work?
It is tax-efficient life insurance policy which a company sets up on their employee’s behalf, then, if a successful claim is made due to the death or terminal illnesses of the insured employee, their family or financial dependents receive a tax-free lump sum.
Who is it for?
It is the perfect product for:
- Company directors – it provides valuable tax benefits when compared with other personal life insurance products. For example, it is a tax-deductible business expense and requires no National Insurance contributions
- Small businesses – perfect for businesses that are too small for group life schemes but want to offer a death-in-service type benefit as part of your business’ employee benefit package
- High earners – the benefit of Relevant Life Cover is that it doesn’t count towards the current Lifetime Allowance of £1.25 million
- Key employees – Relevant Life Cover can provide insurance on an individual basis; therefore, it is ideal for covering just key employees
If you would like to safeguard your business against personal adversities via financial products, contact one of our expert financial advisers today. They will be able to provide you with clear information and advise you on the best insurance products and policies for your business. Call us on 01639 262222 or click here to send us an email.