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Relevant Life Insurance Policies

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Relevant Life Policy

A Relevant Life Policy is a tax-efficient alternative to a “death in service” benefit that allows you to pay the Directors family (and perhaps key employees) a cash lump sum if they die while employed by your company.

Relevant Life Policies are often used by Directors and/or Shareholders of the Business, rather than the individuals have their own life insurance completely separate to the company.

You can save nearly 50% in tax compared to an ordinary life policy while also giving your Directors/Shareholders employees a comprehensive benefits package through access to our exclusive discounts and rewards partners.

Company directors and/or shareholders– provides a valuable tax benefit if their life insurance premiums are paid by your company. Of course, this cover is also hugely important to the deceased family should the policy holder pass away.

Key employees – A Relevant Life Policy can provide individual levels of cover so is ideal if you only want to reward a few employees or provide variable cover.

Whilst the majority of policies are written for company directors, they can be used as an alternative to “death in service” policies for key employees.

Relevant Life Cover Benefits

• Premiums are normally classed as a business expense and so are likely to be an allowable deduction for Corporation Tax purposes.

• Premiums and benefits do not count towards your annual or lifetime allowance – particularly important if you have a large pension fund or wish to maximise your contributions into your pension.

• Keeping the plan in trust offers the potential to plan for Inheritance Tax if your estate is or is likely to be worth more than the current Inheritance Tax threshold.

• Offers a cost-effective way to provide Death In Service benefits to your key employees.