Relevant Life Insurance
A Relevant Life policy benefits both the employee and employer as the tax savings are amplified for both parties.
In simple terms, there is little difference between Relevant Life Insurance and Personal Life Insurance, in that a lump sum payment is made upon death. However, the main difference being that the business is the one taking out the policy on the life of the employee or Director and is responsible for paying the premiums.
Relevant Life Insurance is popular with Contractors, Tradespeople and Directors of their own small limited company given the associated tax benefits. The cover is also ideal for small companies that don’t qualify for a Group Death-in-Service Scheme.
Relevant Life policies are more tax efficient than ordinary life insurance policies that employers fund for their employees. Another benefit of a Relevant Life plan is that the proceeds from the policy do not contribute towards an individual’s Lifetime Allowance, unlike a registered Group Death in Service scheme.
Relevant Life is also available with an element of Significant Illness cover should the employee suffer a condition that would bring about their premature retirement.