What are the benefits of Relevant Life Insurance?
Relevant Life Insurance is a popular in work benefit offered by employers to their employees.
Whether it’s small businesses without the staff numbers to justify a group policy - or the resources to afford one.
Or a large organisation offering relevant life insurance to a high level employee, like a director.
Whatever sized business you have, there are numerous financial benefits to taking out relevant life insurance for your employees.
There are also a lot of benefits for your employees if you give them access to this type of cover.
Here, we’ll take you through some of the main benefits of relevant life insurance, both to you as the employer, and also your employees.
Benefits of Relevant Life Insurance for employers
The main benefit for an employer is relevant life cover is a tax deductible expense.
And it isn’t subject to national insurance or corporation tax.
You should also be able to claim tax relief on the premiums you pay. As long as they meet some specific criteria.
If you’re a small business, it’s often more efficient (and cheaper) than taking out a group policy.
If your business doesn’t qualify for a group policy due to its size, then relevant life cover is an ideal alternative, allowing you to offer your employees life cover as a work perk.
Any proceeds from a claim are also not typically subject to income tax or corporation tax as the policy is providing death benefits or providing a retirement fund.
It is just important to note that the cover must be written into a business trust to qualify for any tax benefits or relief.
Relevant Life Insurance benefits for employees
Relevant life insurance is a particularly attractive benefit for key, high earning employees at large companies.
Firstly, your employees get access to a form of life insurance without paying any premiums through their own salary.
They have the piece of mind that their family will get a pay out in the event of their unexpected death, without having to incur the costs of a policy.
Also, for higher earners, relevant life cover ensures they won’t incur the same level of tax when they access their pension, compared to joining a group life scheme that exceeded their annual pension allowance.
It’s essentially a tax efficient top up.
Plus, because the premiums on the policy aren’t subject to national insurance (either by your employee, or you as their employer) it’s more tax efficient than other forms of life cover available on the market.
Also, any payments that are made to your employee’s family from the policy are typically free from inheritance tax.
Provide Relevant Life Insurance to provide peace of mind
Ultimately, relevant life cover provides a financially efficient means of giving your employees and their families peace of mind that in the event of a tragedy, there would be some financial stability.
Which is at least one less thing to worry about.
Provided all the information given during the set up of the policy was accurate, and any life style or medical changes have been updated during the term of the policy, your employee’s family will receive a guaranteed payout.
Talk to us today about Relevant Life Insurance
Interested in how Relevant Life Insurance could help you and your employees?
Contact us today and one of our experts will be able to help you decide if it’s the right kind of policy for you and what level of cover you could look to take out.
We’ve got years of experience providing business and personal cover to our clients and always work to ensure they get nothing but the best deal available to them.
Contact us today.