Relevant Life Cover: protect your team members, the tax-efficient way.
Relevant Life Cover is a type of insurance policy that is paid for by a business or organisation to cover individual personnel. It is comparable to personal life insurance or a death in service policy. However, Relevant Life Cover is bought and paid for by a company and can be offered as an incentive for employees whilst also being a legitimate, tax deductible business expense.
The cover provided means that should an employee pass away during their tenure with an organisation, their family would benefit from a lump sum to help provide financial support during a very difficult time. The owning business does not directly benefit or profit from an insurance policy of this nature, however there are distinct company tax exemptions related to a unique policy such as this. This type of policy is also not included in pension allowances, either annual or lifetime.
Relevant Life Policies are legally written in trust and paid directly to the named beneficiary, as specified by the employee the policy is bought for. Therefore, the family and dependants of the individual receive a tax free lump sum should the employee pass away during their working life.