Relevant Life Insurance
a tax efficient way to offer life insurance
Expert Insurance Advice
Protection for your key employees
A Relevant Life Plan allows employers to give death-in-service benefits to their employees outside of a registered group life scheme.
What is Relevant Life Insurance?
Relevant Life Insurance, or otherwise known as death-in-service insurance is a tax-efficient insurance policy designed to cover your key employees, who might not be easy to replace. This type of plan could also help high-earning employees who have substantial pension funds and don’t want their death-in-service benefits to form part of their lifetime allowance.
Benefits of Relevant Life Insurance
- Tax-efficient for both employers and employees
- The cover is useful for small businesses that don’t have enough employees to justify a group life scheme
- Provides individual life cover to high-value employees
- In most cases, the benefits are paid free of inheritance tax, providing they are set up in discretionary trust
- Cover can move with an employee to the new employer
- Benefit up to 30 times total remuneration
- Terminal illness and accidental death cover included with most policies
How does Relevant Life Insurance work?
Tax advantages of Relevant Life Insurance
- Premiums are free from income tax, NIC and treated as allowable expenses for corporation tax
- The benefits are free from income tax, capital gain tax, won’t be included in the lifetime allowance and would not part the estate for inheritance ta