Relevant Life is a tax efficient way to insure your life and save up to 49% compared to a personally owned policy.
Cover is taken out and paid for by a company to provide a life insurance benefits for any employee or director.
They are stand-alone single life plans which cover individuals who require cover beyond, or as an alternative to a group company scheme – and are often used in small businesses, where there are too few employees to invest in a company group plan.
This sort of cover is seen as a very tax efficient way for an employer to pay life insurance benefits, rather than employees paying into their own policies. The company makes the payments as an allowable deduction and they are not treated as a benefit in kind, meaning payments are treated as a business expense.
This has benefits for both employer and employee, as it means payments can be an allowable deduction against Corporation Tax.
A relevant life policy has particular benefits for high earning employees, although it can be suitable for any staff member. For high earners, lump sum benefits don’t form a portion of lifetime or annual pension allowances, and they are not taxed as a benefit in kind. This means higher rate tax payers can make substantial savings.
This sort of policy requires expert assistance to implement, which is where Right Plan Insurance can help. With years of industry experience our specialist advisors will identify your requirements and make sure you get the right plan.
To get a quote simply fill in the form and one our friendly advisors will be in touch to discuss your requirements and send you your quotes.
**Tax treatment varies according to individual circumstances and is subject to change**