RELEVANT LIFE INSURANCE
Protect Your Loved Ones' for the Future.
What is relevant Life Insurance?
Relevant life insurance is a type of life insurance policy that provides financial protection for employees, specifically designed for small businesses and business owners. It allows employers to offer a tax-efficient life insurance benefit to their employees, typically as part of an employee benefits package.
It's important to note that relevant life insurance policies have specific eligibility criteria and are subject to certain conditions set by the insurance provider.
Key Features
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Each employee is covered by their own policy, which is separate from any personal life insurance they may have.
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Premiums paid by the employer are typically treated as an allowable business expense, and benefits paid out to the employee's beneficiaries are usually free from income tax.
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In most cases, employees can retain the policy if they leave the company, ensuring continuous coverage.
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The policy pays out a lump sum to the employee's designated beneficiaries in the event of their death during the policy term.
Offering relevant life insurance as part of an employee benefits package can enhance the overall value proposition for employees, helping attract and retain top talent.
Premiums paid by the employer are generally treated as an allowable business expense, reducing the company's taxable profits. This can result in potential tax savings for the employer.
Relevant life insurance can be a cost-effective option for employers, especially for small businesses, as it covers individual employees rather than the entire workforce.
Benefits for Employers
Relevant life insurance provides individual life insurance coverage for directors, offering financial security to their families in the event of their death.
Premiums paid by the company are usually considered allowable business expenses, potentially reducing the director's taxable income.
Relevant life insurance policies are separate from personal life insurance policies, ensuring that the death benefit is paid directly to the nominated beneficiaries and not subject to inheritance tax.
Benefits for Directors
Talk to our experts today to learn how relevant life insurance can benefit you and your business.
WE WORK WITH THE UK’S LEADING INSURERS
Garry Burdett - Senior Protection Specialist