The latest edition of Legal and General’s State of the Nation Report suggests that a majority of Business Owners have never heard of Relevant Life Insurance Plans.
Given the potential benefits of this type of policy, it’s important to understand the basics.
What is Relevant Life Insurance?
Relevant Life Plans are a specialised form of life insurance.
Small businesses usually take them out for the benefit of employees. This could include salaried Directors and Company Owners.
In short, it acts like Death in Service.
What are the Benefits of Relevant Life Insurance?
- Tax Efficiency
Premiums are usually completely tax deductible to the company and not treated as a P11D Benefit in Kind to the employee.
- Savings
Tax adjusted savings are possible when comparing premiums being paid for by the business as an allowable expense to using net personal income.
- Individual Coverage
Each individual employee can have tailored cover amounts.
- Flexible Policy Terms
Each individual employee can have tailored policy terms.
- Financial Protection
Plans provide financial security for the families of employees. This could include the Business Owner’s family who are arguably at greater risk.
- Value Added Benefits
Some policies have value added benefits. These include discounted health checks, gym membership and access to virtual Doctors that significantly reduce wait times when needing to speak to a GP.
Who Can Benefit from Relevant Life Insurance?
- Business Owners – A Business Owner’s family are arguably at greater risk
- Small Businesses – Businesses who aren’t large enough to have a group scheme
- Key Employees – Tailored for each individual and a great way to retain key staff.
Businesses may also consider Executive Income Protection for key employees.
How to Get Started
Relevant Life Insurance might not be suitable for everyone.
It’s important to get specialist advice, as this will make sure that this is the right approach for you.
It’s also important to compare different providers to make sure the right cover is taken because there are many options available with many different value added benefits.
