Relevant life insurance is an extremely tax efficient way of arranging life insurance for business owners and companies that are too small to merit a Group Life Insurance Policy or Death-in-Service policy.
How valuable are the employees in your business? Are you looking to improve the benefits package you offer to existing and new employees?
This is a type of life insurance employees can receive as a death-in-service benefit.
Speak to an Assured Life Adviser today to ask about this tax-efficient benefit for you and your employees.
What is relevant life insurance?
Relevant life insurance is a way of providing life assurance for the benefit of individual employees in your business. Smaller businesses choose relevant life insurance as an alternative to the types of group scheme larger companies offer.
As a death-in-service benefit, these policies pay out if an employee dies or is diagnosed with a terminal illness.
The employee’s family or dependents receive a tax-free lump sum if your employee dies whilst employed.
Of course, while it can’t bring back a loved one it does help provide financial security for the employee’s family.
Who benefits if I take out a Relevant Life policy?
Relevant life insurance benefits both employer and employee.
You pay the insurance through the business which is a tax-deductible benefit, lowering the cost of the policy by as much as 50%. What’s more, it reduces your corporation tax and NI payments.
For your employees, it is a benefit they will appreciate for their families or dependants. The lump sum is paid directly to them on the employee’s death. Until then, the funds are kept in a discretionary trust. If the employee leaves the company, he or she can take the cover with them.
If you want to retain staff or recruit new talent, relevant life cover forms a valuable part of the benefits package you offer employees.
How do I choose the most suitable relevant life insurance?
An Assured Life Adviser will explain all the features and tax benefits, helping you make the right decision about a relevant life policy.
How do I make a claim?
Each insurance company will have its own claims processes, which will be clearly signposted throughout your policy documentation. Assured Life Advisers will happily help you if we are able to do so, should you require assistance at all.
Get in touch
It’s important to get the right advice about relevant life insurance and protecting your employees. Speak to an Assured Life Adviser today.