11 Purdeys Way, Rochford, England, SS4 1ND
11 Purdeys Way, Rochford, England, SS4 1ND
When it comes to Relevant Life Insurance, it’s important to consider your options to ensure you are providing the best cover for your directors and staff. One of the most popular policies is the Aviva Relevant Life Cover, which can offer your business multiple benefits and extensive cover.
Relevant Life Cover is a type of life insurance policy that provides financial coverage for company directors and staff. In the unfortunate event that an employee passes away, a predetermined lump sum will be paid to the employee’s beneficiaries.
Let’s take a look at what’s included in the Aviva Relevant Life and Critical Illness cover and the factors to help you decide if it’s the right cover for your company and staff.
There are many benefits to Relevant Life Cover, one of which is the Relevant Life Insurance tax treatment.
Premiums are typically considered a business expense and are tax-deductible, which reduces your corporation tax liability. Unlike Personal Life Insurance, premiums for Relevant Life Insurance are not subject to Income Tax or National Insurance for the employee. The payouts are also usually free from Inheritance Tax as they are placed in a discretionary trust.
Aviva Relevant Life Cover is suitable for limited companies, partnerships, and small business owners who want to provide life cover for employees. This type of insurance is a cost-effective alternative to group life insurance schemes, especially for businesses with just one or a few employees.
Aviva’s Relevant Life Insurance offers a range of features tailored to provide tax-efficient life cover for employees. As an employer, you can choose between Life Cover only or Life Cover combined with Significant Illness Cover, which gives you the flexibility to fully cater towards your employee needs.
The policies can be tailored with level or increasing cover amounts and terms, with the option to include total permanent disability cover (if you opt for Life and Employee Significant Illness Cover).
If you want to offer comprehensive coverage for your directors and employees, Aviva Relevant Life and Critical Illness is a good option. Along with the benefits of Relevant Life cover, Critical Illness cover also pays out a lump sum if the policyholder is diagnosed with a specified serious illness or medical condition during the policy term.
Aviva Relevant Life and Critical Illness cover is designed to provide financial support to the employee’s beneficiaries during difficult times. The lump sum payout can help cover medical expenses, mortgage payments, or other financial commitments while the policyholder is unable to work.
There are two types of cover: level and increasing. With level cover, the insured sum stays the same throughout the policy term and the premiums usually remain fixed unless stated otherwise. The cover may lose value over time due to inflation, which means the payout might not stretch as far in the future.
Conversely, the sum insured with increasing cover rises over time, typically in line with inflation. Premiums also increase to reflect the higher coverage amount, while the higher amount also helps protect the payout’s value from inflation.
Permanent Disability Cover is an optional add-on to life or critical illness insurance policies that provides a lump sum payout if the policyholder becomes permanently disabled and is unable to work. This type of cover can help the employee’s beneficiaries cover financial commitments, medical expenses, or lifestyle adjustments due to the insured person’s disability. This is an additional feature and so costs an additional fee.
Aviva’s Relevant Life Cover offers several additional benefits that are designed to provide flexibility and comprehensive protection to both employers and employees. The Life Change Benefit allows the policyholder to increase their coverage without undergoing further medical underwriting when certain significant life events happen. This could be anything from a marriage or divorce to becoming a parent or increasing a mortgage.
During the application process, Aviva provides free life cover of up to £1 million, which ensures immediate protection for your directors and staff while the policy is being finalised. The Aviva Relevant Life Cover also has a continuation benefit. If your employee leaves their current employment, the policy offers flexibility to transfer the policy to a new employer or convert it to an individual policy without additional medical underwriting.
Aviva Relevant Life Cover is a great option for employers who want to offer tailored life insurance benefits to their employees. Its comprehensive features, tax advantages, and flexibility will not only benefit your company, but also help you provide an attract benefits package to employees.
There are various factors that influence the cost of premiums, including the employee’s age, health and their role within the company. Before you decide on a policy, it’s important to consider that the premiums fit within your company’s financial plans while still providing the valuable benefits you want. It’s also a good idea to consult with a tax advisor to fully understand the potential tax benefits and obligations associated with the policy.
For extra guidance, you can read our thoughts on Relevant Life Insurance vs Life Insurance.
If you’re looking to get Relevant Life Cover, it’s a good idea to go through a broker such as My Key Man Insurance. We have access to a wide range of insurers and policies, which allows us to compare multiple quotes, rather than being limited to one provider’s offerings.
My Key Man Insurance is an independent insurance expert, meaning we can assess your business’s unique needs and recommend the best policy. We work for you, not the insurer, so our goal is to find the most suitable coverage rather than pushing a single provider’s product.
Along with Relevant Life Cover, we can also find the best policies for Relevant Life for Company Directors and Relevant Life for Contractors.
You can get a free quote from us by filling in our online application form. We have decades of experience and are here to make sure that your company and staff are fully covered should the worst happen.
