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Thursday 23 January 2025
Thursday 23 January 2025
Thursday 23 January 2025
Thursday 23 January 2025
Relevant Life Insurance is a highly efficient and practical way for businesses to provide a death-in-service benefit to their employees. This type of policy is particularly appealing to small business owners and directors, offering financial protection for employees and their families in the event of death or terminal illness. Importantly, it’s a tax-efficient solution that benefits both the employer and the employee.
How Does Relevant Life Insurance Work?
Relevant Life Insurance is set up and paid for by the employer. In the event of the insured person’s death (or a terminal illness diagnosis), the policy pays out a tax-free lump sum to the employee’s chosen beneficiaries. This makes it an invaluable safety net for employees’ families or financial dependants.
The policy is especially beneficial for smaller businesses that cannot access group life insurance schemes, providing them with a viable alternative to offer employees a competitive benefits package.
Key Benefits of Relevant Life Insurance
For the Business:
Tax Efficiency: Premiums are usually considered a business expense, making them eligible for Corporation Tax relief.
National Insurance Savings: Employers do not need to pay National Insurance Contributions (NICs) on the premiums.
Employee Retention: Offering such benefits can help attract and retain top-tier talent, even in smaller organisations.
For the Employee:
No Benefit-in-Kind Taxation: Premiums are not treated as a taxable benefit, so the employee isn’t taxed on them.
Pension Allowance Protection: Benefits and premiums do not count towards annual or lifetime pension allowances.
Financial Security: Families and dependants receive a tax-free lump sum, offering peace of mind in difficult circumstances.
Who Can Benefit From Relevant Life Insurance?
Relevant Life Insurance is ideal for:
Small businesses that lack the resources to set up a group life insurance scheme.
Company directors looking to provide life cover for themselves in a tax-efficient way.
Employees who want comprehensive life cover without affecting their pension allowances.
It’s particularly useful for owner-managers who can structure the policy through their business, saving money compared to paying for a personal life insurance policy.
Why Consider Relevant Life Insurance?
The appeal of Relevant Life Insurance lies in its dual benefits:
For businesses: It provides an efficient way to offer valuable employee benefits without overburdening operational costs.
For employees: It delivers essential life cover while maximising take-home benefits.
This makes it an ideal solution for small businesses looking to offer big-business-style benefits.
Take Control of Your Business’s Life Cover Strategy
If you’re looking to provide life insurance for yourself, your employees, or both, Relevant Life Insurance offers a smart, efficient way to do so. It’s not just a financial decision; it’s a statement about how much you value the people who make your business successful.
Contact us today to learn more about Relevant Life Insurance and discover how it can help your business and employees.
Relevant Life Insurance is a highly efficient and practical way for businesses to provide a death-in-service benefit to their employees. This type of policy is particularly appealing to small business owners and directors, offering financial protection for employees and their families in the event of death or terminal illness. Importantly, it’s a tax-efficient solution that benefits both the employer and the employee.
How Does Relevant Life Insurance Work?
Relevant Life Insurance is set up and paid for by the employer. In the event of the insured person’s death (or a terminal illness diagnosis), the policy pays out a tax-free lump sum to the employee’s chosen beneficiaries. This makes it an invaluable safety net for employees’ families or financial dependants.
The policy is especially beneficial for smaller businesses that cannot access group life insurance schemes, providing them with a viable alternative to offer employees a competitive benefits package.
Key Benefits of Relevant Life Insurance
For the Business:
Tax Efficiency: Premiums are usually considered a business expense, making them eligible for Corporation Tax relief.
National Insurance Savings: Employers do not need to pay National Insurance Contributions (NICs) on the premiums.
Employee Retention: Offering such benefits can help attract and retain top-tier talent, even in smaller organisations.
For the Employee:
No Benefit-in-Kind Taxation: Premiums are not treated as a taxable benefit, so the employee isn’t taxed on them.
Pension Allowance Protection: Benefits and premiums do not count towards annual or lifetime pension allowances.
Financial Security: Families and dependants receive a tax-free lump sum, offering peace of mind in difficult circumstances.
Who Can Benefit From Relevant Life Insurance?
Relevant Life Insurance is ideal for:
Small businesses that lack the resources to set up a group life insurance scheme.
Company directors looking to provide life cover for themselves in a tax-efficient way.
Employees who want comprehensive life cover without affecting their pension allowances.
It’s particularly useful for owner-managers who can structure the policy through their business, saving money compared to paying for a personal life insurance policy.
Why Consider Relevant Life Insurance?
The appeal of Relevant Life Insurance lies in its dual benefits:
For businesses: It provides an efficient way to offer valuable employee benefits without overburdening operational costs.
For employees: It delivers essential life cover while maximising take-home benefits.
This makes it an ideal solution for small businesses looking to offer big-business-style benefits.
Take Control of Your Business’s Life Cover Strategy
If you’re looking to provide life insurance for yourself, your employees, or both, Relevant Life Insurance offers a smart, efficient way to do so. It’s not just a financial decision; it’s a statement about how much you value the people who make your business successful.
Contact us today to learn more about Relevant Life Insurance and discover how it can help your business and employees.
