14th February 2011

Introducing our new relevant life policies

A relevant life policy is an alternative way for an employer to set up life cover for an employee’s dependents in a tax efficient manner, without using a registered group life scheme.

It is set up on a single life basis and is suitable for small businesses that are too small to qualify for a group life scheme. High earning employees, including directors, can also use a relevant life policy to avoid their death in service benefits counting towards their pension lifetime allowance.

Learn more about relevant life policies on our website

Relevant life policies are tax efficient* because:

• Premiums are not subject to Income Tax or National Insurance
• Claim proceeds do not form part of the employee's lifetime pension allowance
• Premiums do not count towards the employee's annual pension allowance
• Premiums may be deductible as a trading expense for the employer
• Benefits are paid through a discretionary trust, avoiding probate delay and usually free of Inheritance Tax

* Provided they meet relevant life policy criteria

A relevant life policy can offer substantial savings for the employer when compared with own-life plans where premiums are being paid from the employee's post-tax income.

We have designed a toolkit to help you with every step of the relevant life arrangement. This includes guides, sales aids, client approach letters, calculators, questions and answers and a relevant life policy checklist.

Visit the relevant life policy toolkit

Protection