Yes some people may be wondering, what is a relevant life policy and what a strange name for a life insurance product. But if you look deeper you may find that a this insurance product could help you make huge savings.
Relevant life insurance is a new kind of business protection that allows directors to arrange their personal term life insurance through their company. It can only be a life only policy and cannot contain any other benefits such as critical illness or income protection. Much like a death in service, a relevant life insurance will allow owners of companies to offer life insurance to their employees in a tax efficient way. Relevant life is particularly beneficial to small businesses and higher earning individuals. Small businesses will often find that group life providers will not provide cover for companies with less than 5 employees. A policy can be taken out on a single life assured bases which offers an alternative to death in service. Group life insurance schemes are not always good for high earning individuals or employees, as they fall under pension scheme rules. A relevant life policy is a tax efficient way of benefiting from a lump sum benefit without the lump sum counting towards the individual’s life time pension allowance.
If you are interested in a relevant life or getting a quote then please give one of our advisors a call and we can discuss the possible benefits to you and your employees. You can also check out our latest relevant life insurance FAQ for more information.
Information regards to taxation levels and basis of reliefs are dependent on current legislation. Individual circumstances are not guaranteed and may be subject to change.
We use a range of insurance providers and their products could be more suitable for your company. These articles are for information only and does not constitute as financial advice in any way.