Providing valuable employee benefits can help businesses attract, retain and support the right people. Relevant Life Cover is a tax-efficient way for employers to provide life insurance for employees, offering reassurance to both staff and the business.
Relevant Life Cover offers businesses a tax-efficient way to provide valuable life insurance protection for employees and directors, helping to support staff wellbeing and provide financial reassurance for their families.
For many businesses, people are their most important asset. Offering additional protection can demonstrate a commitment to employee wellbeing and provide peace of mind for employees and their families.
A Relevant Life Plan is an individual life insurance policy arranged and paid for by a business for the benefit of an employee. It provides a lump sum payment if the insured employee dies during the policy term or is diagnosed with a terminal illness, subject to policy terms.
This type of cover is available where there is an employer and employee relationship, including for salaried directors of limited companies.
Relevant Life Cover can be particularly beneficial for directors and higher-earning employees, as premiums may qualify as an allowable business expense for Corporation Tax purposes, depending on individual circumstances.
The policy is typically written in trust, meaning the benefit is usually paid directly to the employee’s chosen beneficiaries. This can help keep the payout outside of the employee’s estate and may offer inheritance tax advantages.
Premiums are generally treated by HM Revenue and Customs as a legitimate business expense, though tax treatment will depend on individual circumstances and may change in the future.
Offering Relevant Life Cover can help businesses:
Providing this additional level of support can strengthen employee loyalty and contribute to the long-term success of the business.
We can guide you through the available Relevant Life Cover options to help you find the right solution for your business.