What is a Relevant Life Plan?
A Relevant Life Plan is an individual ‘death in service’ life policy. It is a term assurance plan designed to pay a lump sum benefit if the person covered dies or is diagnosed with a terminal illness during their employment, within the term of the plan.
Relevant Life Plans are similar to most other types of life cover but can be a very useful tax efficient alternative providing valuable death in service benefits for you and your employees.
Added peace of mind tax free
The unique way in which Relevant Life Plan’s work mean you can effectively have the taxman help pay for the cover. While the cover is personal to you and your employees’ the policy counts as an allowable business expense so it’s tax deductible and doesn’t count towards annual or lifetime pension allowances.
In most cases Relevant Life Plan premiums and paid benefits qualify for full Income Tax relief, National Insurance relief and Corporation Tax relief.
What can you save with a Relevant Life Plan?
A Relevant Life Plan could result in savings for a business when compared with a typical life policy. Premiums could be reduced by up to 49% if you’re a higher rate taxpayer and up to 40% for a basic rate taxpayer. (Information from Legal and General)
Royal London (other insurers are available!) have created a video that lasts little more than a few minutes and can be viewed from the link below.
Relevant Life Plan and Tax Efficient Life Insurance Cover Video
“In 2013 I was looking to increase my life cover and Chris introduced me to a Relevant Life Plan. It suited my needs perfectly, providing the level of cover I wanted along with the financial assistance of going through my limited company. I would not hesitate in recommending his services as Chris will always advise in our best interests.”
Phil Joseph, Tewkesbury