Relevant Life - Most group risk providers are reluctant to write schemes for fewer than 5 members, and then only as part of a registered group risk scheme.
Our approach is different. The relevant life policy is a single life, stand-alone death-in-service plan, providing benefits on an individual basis.
Key benefits :
-------------------
Unique individual stand-alone cover
Tax advantages for high earners
Premiums not taxed as benefit in kind
Allowable as expense for employer
Cover now up to 20 times annual salary
There are various advantages to this. For a start, it offers high-earning employees who have substantial pension funds a number of tax advantages.
That’s because the lump sum benefits do not form part of the employee’s annual or lifetime pension allowance.
And, although the company pays the premiums, they are not normally taxed as a benefit in kind - which can offer huge savings, especially for a higher rate taxpayer.
While it is mainly aimed at high earners, it can be suitable for any employee. What’s more, the payments may also be treated as an allowable expense for the employer in calculating their tax liability.
Which means it is also particularly suitable for small businesses that do not have enough eligible employees to warrant a group life scheme.
An employer's business which is UK registered, and the employee who is habitually resident in the UK (meaning England, Wales, Scotland, Northern Ireland but not the Isle of Man or the Channel Islands).
Has a UK bank account and is not:
* Under 18
* 74 or older (cover stops at age 75).
The employer will own the policy and the employee will be the person covered but as Relevant Life Cover is written in trust, for the employee’s beneficiaries, the pay-out will go into the trust in the event of a claim.
Relevant Life Cover :
Send Us an enquiry
Who can have it.
Protecting you - Saving you Time and Money
Relevant Life - Most group risk providers are reluctant to write schemes for fewer than 5 members, and then only as part of a registered group risk scheme.
Our approach is different. The relevant life policy is a single life, stand-alone death-in-service plan, providing benefits on an individual basis.
Key benefits :
-------------------
Unique individual stand-alone cover
Tax advantages for high earners
Premiums not taxed as a benefit in kind
Allowable as an expense for the employer
Cover now up to 20 times annual salary
There are various advantages to this. For a start, it offers high-earning employees who have substantial pension funds a number of tax advantages.
That’s because the lump sum benefits do not form part of the employee’s annual or lifetime pension allowance.
And, although the company pays the premiums, they are not normally taxed as a benefit in kind - which can offer huge savings, especially for a higher rate taxpayer.
While it is mainly aimed at high earners, it can be suitable for any employee. What’s more, the payments may also be treated as an allowable expense for the employer in calculating their tax liability.
Which means it is also particularly suitable for small businesses that do not have enough eligible employees to warrant a group life scheme.
Relevant Life Cover :
Who can have it.
An employer's business which is UK registered, and the employee who is habitually resident in the UK (meaning England, Wales, Scotland, Northern Ireland but not the Isle of Man or the Channel Islands).
Has a UK bank account and is not:
* Under 18
* 74 or older (cover stops at age 75).
The employer will own the policy and the employee will be the person covered but as Relevant Life Cover is written in trust, for the employee’s beneficiaries, the pay-out will go into the trust in the event of a claim.
Send Us an enquiry
| How a Relevant Life Cover can cut company costs |
| Premium |
|
Ordinary life cover |
Relevant life cover |
| |
|
£1,000 |
£1,000 |
| Company gross cost |
Employee’s National Insurance contribution at 2% |
£34 |
NIL |
| |
Income tax @40% |
£690 |
NIL |
| |
Employer’s National Insurance contribution at 13.8% |
£238 |
NIL |
| |
Total gross cost |
£1962 |
£1,000 |
| Company net cost |
Corporation tax relief at 20% |
£392 |
£200 |
| Net cost |
|
£1570 |
£800 |
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Now that looks like a head start for your business.
Remember, this is based on our understanding of current tax law which could change in the future.
Who can have it.
The plan will have no cash in value at any time, and will cease at the end of the term. if the premiums are not maintained , the cover will lapse.
The tax treatment is dependent on individual circumstances and may be subject to change in future.
Source : Royal London Marketing Studio
The plan will have no cash in value at any time, and will cease at the end of the term. if the premiums are not maintained , the cover will lapse.
The tax treatment is dependent on individual circumstances and may be subject to change in future.
