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This type of cover provides employees or Directors with life insurance and it is applied for and paid by the business. It is a plan written in trust and is designed to pay out a tax-free lump sum to the employee’s nominated beneficiaries on death or diagnosis of a terminal illness.
What is the potential impact for those not covered under this type of plan?
In the event of death, it is often financially catastrophic for the employee’s family or dependants who would normally have relied on the financial support of that individual.
How can a Relevant Life cover help?
The death-in-service style benefit pays out a lump sum on death or terminal illness to the employee’s nominated beneficiaries (family or dependants).
The cover offers other features, including:
- Benefits are usually free from inheritance tax.
- This type of cover is designed for small and medium-sized businesses (SMEs).
- The premiums payable for the insurance plan count as a tax-deductible business expense
- This cover could benefit high-earning employees who exceed their personal pension lifetime allowance, or members of group pension schemes who want to top up their benefits.
Get in touch
If you would like to discuss your business needs and how this type of cover can provide security for you and your employees’ families or dependants, please get in touch by completing the form below.