Company Directors: Did you know arranging life cover can save you money?
Relevant Life Policies are a tax-efficient way of providing death-in-service benefits on an individual basis to company directors and other company employees, no matter how small the business is.
With a Relevant Life Plan (RLP), the premiums are paid by the employer net of income tax and national insurance. The premium does not constitute a benefit in kind, as the policy will be providing retirement death benefits. Proceeds are paid gross and are not taxable.
How much could I save?
Compared to a Personal Life Insurance plan you could save up to 50% on the comparative cost. Are you maximising this opportunity? The table below that demonstrates the cost saving potential of these plans:
Total saving by using a Relevant Life Plan = £77.92 (a saving of 49.03%).
You should consider a RLP if you wish to provide tax-efficient benefits on the death in service of one or more of your employees or wish to provide benefits to yourself or individual employees. If you leave the business these plans are easily converted to personal plans with the same premium amount so are extremely flexible.
To find out more information on Relevant Life Policies, get in touch with our team on 01903 534587.