Relevant life cover is a form of death in service benefit.
A relevant life policy is designed for smaller businesses as a tax and cost-efficient way to offer life cover to their employees.
This in essence is set up as an individual Death in Service benefit for staff and directors in companies that are too small to consider setting up larger group protection schemes.
Our Resolute advisors can offer clear advice about whether the Relevant Life policy setup is right for you and your business. It is important to discuss and assess the company’s circumstances and get a detailed, tailored recommendation that is right for you.
Key features of a Relevant life policy
- Relevant life cover is a form of death-in-service benefit.
- The policy is set up and paid for by the company.
- The cost of the policy premiums is treated as expenses, which in turn can reduce the company’s corporation tax bill.
- Can be an attractive benefit for employees.
- Directors and Business owners can also be covered.
- The policy is designed to pay out in the event of death or terminal illness diagnosis and is paid to the beneficiaries of either the staff or directors.
How does a Relevant life policy work?
The policy is assessed in a similar way a personal life insurance application. The employees will be asked a series of health and lifestyle questions and the amount you request maybe determined by salary or other elements. This is the put together to generate the premium but rather than the individual paying for the premium, this is covered by the business.
If the individual either dies or is diagnosed with a terminal illness, while they are still employed, then the policy will pay out a tax free, lump sum to the individuals beneficiaries.
This policy is not just designed for employees, directors and business owners can also cover themselves under the Relevant life policy plan.