If something were to happen to you or one of your employees, would the families and beneficiaries be financially secure? Being able to offer peace of mind is a great thank you for their hard work and commitment. A relevant life policy is a way of providing death in service benefits on an individual basis and is particularly effective for small businesses.
Who we support
HR professionals
Business owners
Business partners
Employee relations managers
We're specialists...
Through our collective experience, we’ve observed many of the best and worst practices in the insurance advisory market. We’re here to challenge the status quo and aim to establish a new level of service. We’re combining the best traditions of technical advice and client centricity, with modern thinking and smart use of systems and technology to enhance the client experience and create a dynamic workplace for our team.
Challenges in your industry
If something were to happen to you or one of your employees, would the families and beneficiaries be financially secure? A relevant life policy is a way of providing death in service benefits on an individual basis and it has some helpful tax advantage.
How we support
It’s important to work with an adviser who will take the time to understand your business and the lifestyle of you and your employees in order to determine whether a relevant life insurance policy is the right choice for you and your business.
Your business performs
A relevant life insurance policy is taken out by an employer in the name of the employed individual. It is designed to pay a lump sum to the individual or individual’s beneficiaries if the person dies or is diagnosed with a terminal illness, whilst employed.
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What is relevant life insurance?
Relevant life insurance is a death-in-service policy that pays a lump sum to your beneficiaries if you were to die or to suffer a terminal or serious illness. If differs from other life insurance policies, such as Group Life, in that the premium is paid by the business instead of coming out of taxed income. In this way, it is a tax efficient benefit that is very flexible.
When discussing the options of whether Relevant Life insurance is viable with our clients, we start off with three key questions:
What provisions do you have in place to look after your family, or the families of your employees?
If you already have personal or private life cover in place, have you thought about paying for it through the business?
When was the last time you reviewed or optimised your executive benefits package?
How can a relevant life insurance policy help your business?
In most cases it can be viewed as an allowable business expense by HMRC and as such, all premiums and paid benefits are eligible for full income tax, national insurance and corporation tax relief.
If you are a business owner, shareholder or self-employed and wish to provide the benefit of life insurance in a tax efficient way for yourself and / or a handful of employees, a relevant life policy could be the right choice for you.
Benefits of a relevant life insurance policy
- Provides a lump sum on the death (or diagnosis of a terminal illness) of the person insured
- Can be classed as business expense, therefore the premiums benefit from corporation tax relief
- Can be placed in trust for beneficiaries, therefore remains outside the estate for inheritance tax purposes
- Offers significant cost savings for basic and higher rate taxpayers compared to ordinary personal ownership
- Can be used to “top up” an existing Group Life scheme augmenting existing benefits
Who we support
Whatever the size of your business, you must be taxed under Schedule D PAYE salaried directors of a business.
it can be used in place of a Group Life policy.
it can be used to top up a Group Life policy and is an excellent tool to enhance an existing benefits package and retain your top talent.
It’s also portable, so that if you are a director of one business and you set up another business, you can take it with you.
Questions to consider
How to setup a relevant life insurance quote with Partners&
Our team have a track record of providing outstanding service and care when it comes to working with clients exploring whether to introduce relevant life insurance cover. They take the time to understand your business, your aims and objectives, all of which plays a part in providing you with an accurate relevant life quote.
Meet the team
James Porter
Managing Partner - Wellbeing Health & Protection
