Relevant life

Relevant life insurance

Cost efficient life insurance for smaller businesses.

Protect your business with relevant life insurance

What is relevant life insurance?

 

Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer a death-in-service benefit to its employees. It is set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured. As well as the proceeds go directly to the employee’s family or financial dependants.

Benefits of relevant life

To the business:

  • Available to businesses and companies which are too small to set up a group life scheme. So can help small businesses to attract and retain high calibre staff.
  • Corporation Tax Relief (so long as the premiums are wholly and exclusively for the purposes of the business)
  • No National Insurance contributions to pay on the policy payments paid to fund the policy.

To the Employee:

  • No national insurance contributions to pay on the policy payments paid to fund the policy.
  • The policy payments are not taxed as a benefit in kind.
  • Policy payments and benefits do not count towards annual or lifetime pension allowances.
Relevant life insurance

Example saving: Business Director

Andrew Miller is managing director of a furniture design business in Lancashire. He already has a life policy but with he and his wife about to have their third child, he wants to increase his cover to help make sure his whole family would be financially secure if he died. His existing plan doesn’t allow him to increase his cover, so he decides to take out further cover by starting a new life policy.

Comparing the two plans that his financial adviser recommends, he doesn’t hesitate to choose the Relevant Life Plan. You can see from the following example the sums that made his decision easy.

This Life Plan is particularly beneficial for Andrew because he’s the director and shareholder of his own business, so all the savings go to him. If he were to pay for his life cover personally it would cost him £1,569.65 every year. However, by buying his cover through the company using a Relevant Life Plan, it only costs £800 each year. That’s £769.65 less, which is a saving of almost 50%.

The example assumes that Andrew’s relevant life plan qualifies as an allowable business expense.

What we can offer

If your business already has a scheme in place, The Health Insurance Group can offer a no obligation free review of your existing arrangement.

We have access to some of the most competitive rates in the market place, as we work closely with all of the main insurance providers - certainly ensuring we get the best, most cost-effective deals for you. Contact us today to find out more about relevant life insurance schemes we offer...

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