Relevant Life Cover

Tax Deductible Life Insurance

Are you a shareholder / Director of your own Ltd Co?
Do you draw a PAYE salary from your Ltd Co?
Do you want to have tax efficient life insurance for you and / or your employees?

If the answer is yes, you may be entitled to arrange a Relevant Life Cover policy.

What is relevant life cover?

  • An individual death in service life assurance, written in trust to beneficiaries nominated by the policy holder.
  • The cover is personal to directors and their employees, however the policy may count as a business expense and is therefore tax deductible.
  • Because the premiums are paid through the company the plan is designed to meet certain legislative requirements that mean your premiums, benefits, and options should be treated tax efficiently
  • If the covered person dies or is terminally ill the company receives a fixed one-off lump sum

Eligibility

  • Must be an employee of the business (which includes salaried company directors.)
  • Excludes sole traders, equity partners of a partnership, and equity members of a LLP
  • Single life cover (no option for joint cover)

What makes this cover so great for company directors?

  • Premiums are normally considered as a business expense and are therefore likely to be allowable for a corporation tax deduction
  • Premiums and benefits don’t count towards your lifetime pension allowance – important if you have a large pension fund or what to maximize your pension contribution
  • Cost effective way to provide life insurance to your employees
  • Payouts should be free of UK income tax and capital gains tax.
  • Benefits paid through the plan do not form part of the estate of the employee in regards to inheritance tax

Contact us to arrange an instant relevant life cover quote, we will need the following information:

  • Name
  • Date of birth
  • Male / female
  • Smoker / non-smoker
  • Level of cover required (£250,000 for example)
  • The term of the policy (15 years for example)