Relevant Life Cover

Valuable peace of mind for your employees.

A relevant life insurance policy enables employers to provide individual death-in-service benefits for their UK-resident employees who are aged 17 - 71 when the policy is established. The policy, which is applied for and paid for by the employer, pays out a tax-free lump sum if the insured employee dies — or is diagnosed with a terminal illness — whilst in the service of the employer. Relevant life plans are however available only where an employer-to-employee relationship exists — i.e. employees of a limited company. For that reason, relevant life insurance is not available to sole traders, a partnership’s equity partners or equity members of a Limited Liability Partnership

Employees can use a relevant life policy to provide their own individual ‘death in service’ benefits in addition to those offered by their employer’s group life insurance scheme if such a scheme exists. The premiums paid to a relevant life policy and the benefits paid out, are not included in the employee’s annual or lifetime pension allowances. (Relevant life is a term insurance, so the policy has no surrender value.)

Amount of cover

The policy’s sum assured is based on a multiple of the employee’s total remuneration, which includes his or her salary and any dividends and/or bonuses they may be paid. Depending on the age of the employee, and the insurance provider’s terms and conditions, the multiple can range from 10 times remuneration to 25 times remuneration. (There is no statutory limit on the amount of cover.)

Tax benefits

Employer: Providing Her Majesty’s Revenue & Customs agrees that the premiums paid are wholly and exclusively for the purposes of the business, the employer is entitled to corporation tax relief on the payments. Furthermore, there are no National Insurance contributions to pay on the policy payments. Employee: There are no National Insurance contributions to pay on the policy payments and as the payments are not treated as a benefit in kind, they are not subject to income tax. On the death of the insured person, the tax free lump sum will not form part of the deceased employee’s estate and will not be subject to inheritance tax.

Trust

To ensure the proceeds go directly to the employee's family or financial dependants, the policy is written into trust.

Portability

If the policy is portable, the employee can take it with them should they move to a new employer, although a new trust would need to be set up in that circumstance. The employee can either assume responsibility for making the policy payments, or ask their new employer to pay the premiums as part of a benefits package.

PROTECTION ENQUIRY FORM

Your Address

Cover Required

Lives Assured

1st Life Assured

2nd Life Assured

Marketing Information

Sensitive Personal Data

We may need to collect sensitive personal data including information about your health, ethnic origin, or criminal prosecutions from third parties such as employers and credit reference agencies, fraud prevention agencies and other similar organisations in order to provide you with the services, for example where you require advice on protection or mortgages products.

If you consent to us obtaining your sensitive personal data from third parties referred to above for the purpose of providing you with the services, and sharing it with third party providers to obtain quotes on your behalf, for example where we are providing you with mortgage or protection advice as part of our services, please tick this box.

Submit your Information

From time to time, we would like to contact you about our products and services which we think you might be interested in. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you.

Email
Telephone
Post
Yes please, I'd like to hear about offers and services.
No thanks, I don't want to hear about offers and services.
Please tick this box to confirm you have read and understood our privacy policy.

STOCK DATA
Value Move %
FTSE 100
7234.03 26.32 0.365
FTSE 250
22984.24 123.85 0.542
FTSE 350
4141.99 16.34 0.396
FTSE All Shares
4123.97 16.09 0.392
Dow Jones
35294.76 382.203 1.095
Nasdaq
14897.34 73.91 0.499

Don’t miss this Opportunity!

Keep informed about our custom services