If you would like to provide valuable life cover and financial security for your Management Team a Relevant Life Plan could be the answer.
At the heart of every successful business lies a core of senior executives and key employees. They collectively focus on achieving your strategic and operational goals, with the aim of driving your business forward. Very often that level of intense focus can mean that their individual personal finances become neglected or indeed completely overlooked.
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 Plans 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, NI and Corporation Tax relief.
What can you save?
A Relevant Life Plan could result in savings 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.
The main points in brief:
- Reward your management team
- Higher levels of cover available
- Does not count towards the Lifetime Allowance
- Tax efficient