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Providing peace of mind for your staff will be of benefit to both them and your business. A *tax efficient relevant life plan can help to attract and retain the best people. This in turn can help your business to thrive.
Many businesses today recognise that the biggest asset exists in human resources. Finding and retaining the best staff means that your business needs to offer something special to your employees to ensure that they feel wanted and cared for.
Relevant Life Cover is a tax-efficient life insurance policy available for companies where there is an employee/employer relationship (therefore not available to sole traders, partnerships or Limited Liability Partnerships) which offers a death-in-service benefit to its employees (including salaried directors). It's set up by the company and pays out a lump sum on the death (or diagnosis of a terminal illness) of the person insured.
Typically, a Relevant Life Plan is a cheaper alternative to individual life policies. It is also of benefit to high earning individuals, such as directors, where the death in service does not form part of their 'lifetime allowance'.
It is paid for by the employer and must be written in Trust before the policy can start. Therefore, the premiums are usually considered a genuine permissible business expense by HM Revenue and Customs (HMRC). In the event of a successful claim the benefits are paid to the trustees who are then responsible for their distribution.
*Please note that we do not offer advice on pension or taxation matters. You should contact your accountant or other suitably qualified person to confirm whether this product is appropriate for your circumstances.
These plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.