What is a Relevant Life Policy?
A Relevant Life Policy is similar to a life insurance or a death in service benefit. Basically should an individual pass away during the length of the policy, a lump sum could be paid to their family or dependents. One of the main differences between the two policies is that a Relevant Life Policy is more tax efficient, as well as being a major incentive or benefit for employed staff members.
A Relevant Life Plan is paid for by the business or company but covers the individuals they employ. This means that not only does the company offer this as an employee benefit but also it is also considered a legitimate business expense and is therefore tax deductible.
Use our Relevant Life Cover Calculator today to illustrate and compare how much you could potentially save with a Relevant Life Policy.
Who benefits from Relevant Life Cover?
Despite being taken out and paid for by the individual's employer the policy pays out to the family or dependents left behind should an employee death occur. The company itself does not benefit from this policy directly. Relevant Life Cover can be written in trust, which ensures that the money is issued to the named receiver. This type of policy means that the lump sum is also issued as tax-free.
All premiums paid to a Relevant Life Policy by a company or organisation fully qualify for exemption from tax, this includes Income Tax, National Insurance and Corporation Tax. Purchasing this type of policy saves money when compared to a standard Life Insurance policy. Also it can be written into trust so it is not subject to Inheritance Tax and is not considered a taxable sum at all. So not only does this type of policy ensure most cost effective benefits for businesses but also provides for their employees' dependents when they need the most support.
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Frequently asked questions - Relevant Life Policy
Please drop us a message if you have any queries. Here are the most commonly asked questions about Relevant Life Policy.
What is a Relevant Life Policy?
Who owns and pays for a Relevant Life Policy?
What is the Cost of Relevant Life Policies?
How quickly can a Relevant Life Policy be set up?
How much should an Individual be Covered for?
How long should the Relevant Life Policy Term be?
Does Relevant Life Insurance include Critical Illness Cover?
What are the Benefits to an Employer for Providing Relevant Life Cover for Employees?
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