Relevant Life Insurance is a tax-efficient form of arranging life insurance for an employee or Director of a company. Under current legislation, the premiums payable on a Relevant Life plan count as a business expense making this type of policy more tax-efficient for companies. Think of it like private Death in Service.
The Benefits of Relevant Life Plans
- Highly Tax Efficient – Usually treated as an allowable expense.
- Offers Directors and employees with a form of Private Death in Service.
- Unlike Death in Service, can be taken with you if you leave.
- Often more cost effective – paid for by the company, not the Director.
- Provides financial security to the family of the Director/employee.
- Doesn’t count towards your lifetime pension allowance.
- Can also be used as an attractive Employee Benefit.
