Relevant Life Cover.

Tax efficient and provides for death in service for employees.

A Relevant Life Plan is a life assurance policy available to employers to provide a death in service benefit for an employee.

It is designed to pay a lump sum if the person covered dies or is diagnosed with a terminal illness whilst employed during the term.

Relevant life plan cover is paid for by the employer, on behalf of the employee and for the benefit of the employees family.

Relevant life plans can be established for employees or directors to benefit their dependents via a discretionary trust.

Who is it aimed at?

• Employers looking to provide ‘death in service’ benefits, but with too few employees to set up a group scheme.
• Directors wishing to provide their own individual ‘death in service’ benefits without taking out a scheme on all employees.

Why is it tax efficient?

• It is an allowable business expense and usually receives corporation tax relief.
• Employees do not pay tax or national insurance as a benefit in kind.
• The policy is always set up in trust, ensuring a payout directly to the trust, avoiding probate.
• No inheritance tax as the trust ensures it remains outside of the deceased estate.

If you would like some advice regarding how best to protect your business then do not hesitate to contact us.

There is never ANY OBLIGATION.

We almost always advise placing policies in trust and can advise and construct specialist cross option agreements where appropriate.

Tax treatment depends on the individual circumstances of each client, and may be subject to change in the future.