As an employer, to build trust and loyalty within your business, it’s important to show a ‘duty of care’ for your employees by valuing their welfare! One easy and effective way of making this happen is Relevant Life Insurance!
Relevant Life Insurance is the equivalent of Group Life Insurance but for smaller companies, typically covering single directors, where the company pays the premiums but the benefit is paid to the employee’s estate.
This is a fantastic option for smaller business as premiums are usually tax deductible making Relevant Life Insurance highly tax efficient, whilst the premiums are not considered a ‘benefit in kind’ for the employees by HMRC.
In order to qualify or favourable tax treatment, Relevant Life policies must be written in trust. This means that the proceeds from your insurance policy are used exactly as you intend which may not be the case without the security of a trust.
It’s not considered a ‘benefit in kind’, and premiums are eligible for Corporation tax relief
It’s a high-quality insurance accepting smokers and those with previous health problems.
Your employee’s estate receives an Inheritance-tax-free cash lump sum upon claim
Before advising, we will look at the following factors:
The number of employees you have
Who you wish to cover
The type of industry you work in
The level of benefit required
So, what’s the difference between Relevant Life and Keyman Insurance?
If anything happens to an insured person under Key Man cover, the company would be paid the sum insured. With Relevant Life, the payment would be paid to the insured person’s nominated beneficiaries (or a chosen charity).
Simply by putting in place protection to safeguard the most important people in your company, you can rest assured that their loved ones are financially secure should the unthinkable happen.
Call us now on 0116 366 6866 to begin protecting your most important assets today, or email us at [email protected]!