Relevant Life Insurance
Life insurance is just one of the many benefits you can offer your employees. Having a policy in place could set you apart from other companies, and we can help you to find a policy that’s right for your business and staff by assessing your needs and providing a tax-efficient solution.
What is a RelevantLife Insurance plan?
A relevant life plan pays out a lump sum to a chosen set of beneficiaries, should the insured employee die whilst working for your company. This sum could really help that employee’s family and/or any nominated beneficiaries. This form of cover is also available to company directors.
Is a relevant life plan cost effective?
It depends, relevant life insurance policies are not actually classed as a benefit in kind for the employee. But as an employer, you could offset this policy as a deductible business expense.
Are relevant life plans liable for inheritance tax?
The plan is a trust and should not form part of an employee's estate, making it exempt from inheritance tax. However, there may be some instances when tax is deductible. If you’d like to discuss a relevant life plan in further detail, please get in touch with one of our highly experienced IFA’s, who will be happy to advise on the best plan for you and assess your business needs to see if this particular policy is of any benefit to your company.