Relevant Life Policies

A Relevant Life policy is written on as a single life policy, taken out on the life of an employee or director to provide death in service benefits.

These policies are only available to employees or directors of Limited Companies. Due to the tax treatment of this policy it can offer significant discounts on the overall cost.

Relevant life insurance is applied for and paid for by the business. It is written into trust so it pays out a lump sum to the employee or their beneficiaries.

The relevant life policy complies with relevant life insurance legislation that makes it tax-efficient for the employer and employee.

A traditional group scheme usually only covers up to 4 x salary, whereas Relevant Life Insurance can cover up to 25 x salary*, depending on age. This allows directors/owners to cover themselves fully and potentially offer their employees a better level of cover as a benefit of employment.

Futures Protected can help you take out this cover and ensure any staff you’d like to offer this for are given the correct amount of cover for their needs and your budget.

Please remember that tax treatment depends on individual circumstances and may change in the future.

*Source: 5/8/2016 – Legal and General – Business Protection – What is Relevant Life?


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