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What is Relevant Life Cover?

If you’re a business owner employed by your business, there is a tax-efficient alternative to purchasing private life insurance and critical illness policies that will save you 20% on the cost of your premiums, called Relevant Life Cover.

Relevant Life Cover essentially works in the same way as life insurance. Should the person insured die whilst in the employ of the company, then it will pay out to their beneficiaries.

A relevant life policy can also cover the life of any of the company’s employees meaning the business can offer a benefit which can help attract and retain employees. This may be of interest if you don’t have enough employees to acquire a group life policy, or if you only wish to cover certain people within the business.

 

Tax benefits of a Relevant Life Policy

Because a company pays the monthly premiums on a relevant life insurance policy, they are not treated as a benefit of kind, and are therefore tax-deductible.

This means policies can be off-set against corporation tax as they are considered a business expense and premiums do not form part of a person’s lifetime allowance for pension savings.

If you would like a quote or to discuss the potential tax savings of paying for life insurance through your business, call us today..0844 683 7971


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