Protecting your employees and their families whilst they work for you can be an attractive benefit to offer. It shows that you care for both your employees wellbeing along with their families should the worst happen whilst employed by yourself. Our advisers are able to talk you through the benefits of Relevant Life Cover and ensure this is the most suitable cover for your employees.
What is Relevant Life Cover?
Relevant Life Cover offers you a tax efficient way for an employer, usually a smaller business to provide life cover for an employee. The cover is designed to help protect the employee’s family against the impact of their death or diagnosis with a terminal illness whilst they are employed.
Is Relevant Life Cover Suitable For Me?
Relevant Life Cover may be suitable if :-
- If you have a small business without enough employees to set up a group life scheme.
- If you wish to provide death in service benefits to your employees that exceed those payable under the main company scheme.
- The employees have substantial pension funds and don’t want their death in service benefits to form part of their pension lifetime allowance, or for premiums to impact their protection from the lifetime allowance.
Summary of Cover
- There is no assessment of premiums on the employee as benefit in kind or otherwise.
- Premiums paid by the employer are usually viewed as an allowable business expense by HMRC.
- Premiums and any benefit paid are eligible for relief from :
- Income Tax
- Corporation Tax
- National Insurance Contributions
- Benefits do not count towards the lifetime allowance for pension purposes.
- In most cases benefits are paid free of Inheritance Tax.
Who can take out the policy?
The policy can only be taken out by the employer, who can be :
- A Sole Trader with employees.
- A Partnership
- A Limited Liability Partnership
- A Limited Company
- A Charity.
Contact our expert advisers today