Relevant Life Cover

Relevant Life Cover provides your employees with a death-in-service benefit. Although the company makes the payments, it’s not normally treated as a benefit in kind, so not included in income tax assessments. For a higher rate taxpayer, this could be a significant saving.

A Relevant Life plan will only cover those who take a salary from the business. If you are a sole trader, or a partner, you are not eligible for this type of insurance policy. However, this does not stop you buying regular life insurance out of your own income in the normal way. A Relevant Life Plan policy can be used to cover company directors and those who own their own business, provided it is registered as a company in the UK and they take a PAYE salary from the enterprise.

• Unlike most group life schemes which are governed under pension legislation, any pay outs from a relevant life plan do not affect your pension contributions.
• If a director or employee leaves, they can keep the policy going by simply taking over the responsibility for paying the premiums, without needing a new application, medical or underwriting.
• You can insure up to thirty times your earnings, depending on your age and the insurance provider of choice
• Makes staff feel more appreciated and valued which means they are more likely to stay with your business for longer.

We understand the complexities of business continuity planning and depending upon whether you’re a sole trader, limited company or partnership, our business protection team can advise you on the most cost-effective options for your business. We listen to your specific needs before searching hundreds of business protection products to find one that matches the individual requirements of your business.