Relevant Life Cover

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Relevant Life Cover

If you’re wondering how relevant life works, or how it’s calculated you may be surprised that there aren’t any catches involved. The benefits made simple:

  • You immediately save tax by the business paying the life cover premium.
  • It is not treated as a benefit-in-kind; the premium is not included as a P11D benefit.
  • Premiums are not subject to National Insurance payments for the employer or employee.
  • Your business can claim Corporation Tax Relief on the premiums.
  • The benefit is payable tax free.
  • The benefit does not count towards your lifetime allowance for pension purposes.
  • The most attractive proposition is the fact it has distinct tax advantages. Let’s say you’re a business director or a contractor and you’re currently paying for your own life insurance through your personal bank account. If you use our relevant life calculator, you could find out how much you could be saving by opting into a relevant life policy.

What Are The Main Features of a Relevant Life Policy?

  • The policy will pay out on death or earlier diagnosis of a terminal illness.
  • The payout is normally made tax free to your beneficiaries via a trust used in conjunction with the a Relevant Life policy.
  • The maximum age the policy can provide cover to is age 75.
  • The policy can be either on a level or indexed linked basis.
  • Sums assured can be provided upto £10 million.

Relevant Life Policy Premium Benefits For an Employer:

No national insurance payments
Corporation tax relief

Relevant Life Policy Premium Benefits For An Employee

No national insurance payments
No income tax payments

The Importance of Life Insurance

A lot of people wonder why they should take out life insurance. At times we can walk around without a care in the world, acting as though we are invincible and that nothing bad could ever happen to us. It’s one thing not being there for your son or daughter’s wedding day, or watching your grandchildren grow up, but leaving them in a financial position where they could carry on their lives, just as they did when you were here, brings a slight element of comfort to a heart wrenching thought.

It’s life insurance that ensures this feeling of comfort.

In addition to providing financial support to your family, life insurance payouts can also be used to settle any outstanding debts or mortgage payments you may owe, which would again, relieve your family of having this large financial burden on their shoulders.

Life insurance cover can be as little as £5 a month but there are many factors that can affect the price of your life insurance policy, which may cause the cost of your monthly premium to increase considerably, such as: your health, age, if you’re a smoker or non smoker, the amount of cover you desire and the duration of your policy.

Find Out How Much You Could Save