Relevant Life Insurance
Tax-Efficient Life Cover For Directors And Employees
Relevant Life Insurance is a tax-efficient way for businesses to provide life cover for directors and employees. It offers valuable financial protection for an individual’s family should the worst happen, while allowing the business to benefit from a highly efficient method of funding the cover.
For many small and medium-sized businesses, Relevant Life Insurance can provide an attractive alternative to personal life insurance, combining family protection with potential tax advantages.
Why It Matters
Providing life cover through a Relevant Life policy can offer a number of benefits, including:
- Financial protection for an employee's family
- A valuable benefit for directors and key employees
- Potential corporation tax relief on premiums
- No employee National Insurance liability on premiums
- Benefits paid outside the individual's pension allowances
Having the right arrangements in place can help businesses support their employees while providing an efficient and cost-effective employee benefit.
Supporting Employees And Families
Family Protection
Tax Efficient
Employee Benefit
Trust Planning
How Relevant Life Insurance Works
A Relevant Life policy is arranged and funded by the business on behalf of an employee or director.
The policy is typically written into trust, meaning any benefits are paid directly to the chosen beneficiaries rather than through the individual’s estate. This can help ensure funds are distributed efficiently and may reduce potential inheritance tax implications.
As premiums are paid by the business, Relevant Life Insurance can often be a more tax-efficient solution than arranging equivalent cover personally.
Tailored To Your Business
Relevant Life Insurance can be particularly valuable for directors of limited companies and businesses looking to enhance their employee benefits package.
The suitability of a policy will depend on individual circumstances, business structure and protection requirements. At Sentinel Commercial, we help businesses understand the available options and arrange cover that reflects both their objectives and those of their employees.
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Speak To An Adviser
If you’d like to learn more about Relevant Life Insurance and whether it could be right for your business, we’re here to help.
Complete the contact form, call 01904 530980, or speak to an adviser to start the conversation.
Get in Touch
To discuss your Business Protection needs, please feel free to contact us on 01904 530980. Our lines are open from 9am to 5pm, Monday to Friday. Please be aware that calls may be recorded or monitored.
Alternatively, please complete the form below.
