Business Protection

A Relevant Life Plan is a term assurance plan available to employers to provide an individual death in service benefit for an employee. It is designed to pay a lump sum if the employee dies whilst employed during the length of the policy. It will also payout if the employee, whilst employed, is diagnosed with a terminal illness.

It can help smaller businesses attract and retain high-calibre staff by offering them attractive benefits packages that are also tax efficient. By arranging Relevant life, there are tax benefits for both the employer and employee, which are explained below:-

Employer benefits:

• Corporation tax relief (so long as the premiums are wholly and exclusively for the purposes of the business);
• No National Insurance contributions to pay on the policy payments paid to fund the Relevant Life policy.

Employee benefits:

• No National Insurance contributions to pay on the policy payments paid to fund the Relevant Life policy;
• The policy payments won’t be taxed as a benefit in kind; and
• Policy payments and benefits don’t count towards annual or lifetime pension allowances.