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"Why Company Directors Choose Relevant Life Insurance"
✅ Tax Benefits: Reduce the cost of insurance by having premiums paid through your business.
✅ Family Protection: Ensure your loved ones are protected in case the unexpected happens.
✅ Written in Trust: Ensures faster, tax-free payouts to your chosen beneficiaries.
✅ Affordable Coverage: Tax relief makes it more affordable than traditional life insurance.
"Benefits of Relevant Life Insurance for You and Your Business"
✅ Up to 25% Corporation Tax Relief
✅ No employer or employee National Insurance
✅ No Income Tax
✅ No Benefit in Kind Tax
✅ Typically save between 40% and 66%
✅ Significant savings to be made compared to personal life insurance
✅ Written in Trust to to plan against Inheritance Tax
HOW DOES IT WORK?
The employer/ business takes out the plan on the life of an employee or director. The plan can be written to a maximum age of 75 and can contain flexible continuation options should an employee or director leave employment.
Generous sums assured are available (subject to criteria) and the plan is set up from outset in a specific discretionary trust, called a Relevant Life Plan Trust.
This ensures the proceeds do not fall into the estate of the deceased, thereby ensuring much quicker access to funds and also ensures the proceeds are paid free of Tax.
TAX EFFICIENT
TAX-DEDUCTIBLE
TAX FREE
CUSTOMER REVIEWS
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FAQ's about Relevant Life Insurance
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CAN MY FINANCIAL ADVISER DO THIS?Yes, if this is what they specialise in. Advisers are able to provide advice on business protection insurance products if they hold the necessary authorisation. The predominant focus of advisers in the protection sector is on recommending and facilitating personal protection plans, which do not optimise tax considerations. Guidelines usually restrict advisers from offering guidance or facilitating transactions related to tax-efficient business protection insurance products unless specifically authorised by their firm. Business protection products entail greater intricacies, chiefly attributed to the diverse tax implications surrounding their structuring. They can be litigious if set up incorrectly. If you're a company director and your adviser hasn't got you set up with tax efficient insurance plans already, it's probably because they they're not able to do so.
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WHAT HAPPENS IF I CLOSE MY BUSINESSIf you set up a Relevant Life policy for an employee or director who eventually decides they want to leave while the policy is still active, there are a couple of options available to you and them. They can, if they want to, cancel the plan and they’ll no longer have the protection. They can carry it on as a personal life insurance plan. Or they can transfer it over to their new employer (assuming they’re willing to take the policy on). This is known as Relevant Life Policy continuation.
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WHO RECEIVES THE MONEY?Relevant Life Plans are written in Trust. It pays a lump-sum to the employee's family if they die or are diagnosed with a terminal illness with a life expectancy of less than 12 months. Keeping the plan in trust offers the potential for an employee to plan for inheritance tax if an estate is, or is likely to be, worth more than the current inheritance tax threshold.
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IS RELEVANT LIFE COVER A P11D BENEFIT?There is no P11D benefit-in-kind to pay
"Relevant Life Cover allows employers to offer a death-in-service benefit to individual employees. It’s a tax-efficient, stand alone, single life insurance policy, set up and paid for by the employer. The proceeds are paid tax-free via a discretionary trust on death (or diagnosis of a terminal illness), for the benefit of employees' and directors' dependents".
If you're a Director who's paying for your life insurance from your personal income:
You could benefit by switching to a Relevant Life Insurance Plan provided by your limited company.
Key benefits
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Premiums paid by the company are treated as a business expense for tax purposes
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The premiums paid are not treated as a benefit in kind or otherwise taxable on the life assured
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The premiums paid do not count as part of the employees annual allowance (for pension)
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Premiums are not subject to employer or employee national insurance contributions
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Any benefit payments are free of income tax
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The death benefit does not form part of the your estate for IHT purposes
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The maximum amount of cover available is normally £10 million
We are authorised and regulated by the (FCA). The Financial Conduct Authority (FCA) regulates the financial services industry in the UK
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