Revolutionising Life Insurance for Business Owners
In an era where tax efficiency and smart financial planning are paramount, relevant life insurance emerges as a compelling choice for company directors and employees alike. Executive Life, a leader in providing tailored insurance solutions, shines a spotlight on this innovative form of life cover.
Understanding Relevant Life Insurance
Relevant life insurance offers a tax-efficient way to provide life cover. It's an exceptional tool for limited company directors and employees, ensuring peace of mind without the burden of heavy tax implications. With relevant life insurance, the premiums are typically a business expense, not a personal one, making it an allowable business expense for the company and with no benefit in kind for the life insured.
This specialised insurance plan stands out by offering corporation tax relief, a feature not commonly found in personal life insurance policies. For those covered under a relevant life plan, the benefits extend to tax efficiency, as premiums don't attract national insurance contributions, income tax or benefit in kind. This aspect makes relevant life plans not just an insurance product, but a strategic financial planning tool.
The Advantage of Choosing Relevant Life Plans
Choosing a relevant life plan offers several advantages. Firstly, it provides life cover in a tax efficient manner. The premiums paid for relevant life cover don't count towards the pension lifetime allowance, and there's no additional income tax or national insurance contributions to worry about. Moreover, in the unfortunate event the person covered dies, the lump sum benefit paid out typically does not attract inheritance tax as it can be left into trust for the family of the deceased. This makes relevant life plans an attractive option for anyone looking to optimise their tax liability while ensuring robust life cover.
For businesses, particularly limited companies, relevant life plans are a savvy way to arrange life insurance. These plans allow businesses to provide life cover for their directors and employees in a cost-effective, tax-efficient manner. The premiums paid by the company are generally deductible as a business expense, reducing the overall corporation tax.
Executive Life: A Trusted Partner in Relevant Life Insurance
At Executive Life, the focus is on providing a tailored, comprehensive approach to relevant life insurance. As independent financial advisers, Executive Life experts understand the unique needs of company directors and employees. We work diligently to offer relevant life policies that are not just financially sound but also aligned with individual circumstances and business goals.
Maximising Benefits with Relevant Life Policy
Expanding Coverage Beyond Traditional Life Insurance
A relevant life policy is more than just a financial safety net; it's a proactive approach to safeguarding the future of a director or employee's family. Executive Life specialises in crafting these policies to ensure they resonate with the unique needs of each client. Unlike traditional life insurance, a relevant life policy is paid for by the business, which can significantly reduce the tax burden for both the employer and the employee.
Enhanced Protection in the Face of Uncertainty
One of the most poignant features of a relevant life plan is the inclusion of terminal illness cover. This ensures that, should an employee be diagnosed with a life-threatening condition, they can access the policy benefits, providing crucial financial support during a difficult time. With a focus on life expectancy and the unforeseen challenges it may bring, Executive Life's recommended relevant life plans offer a comprehensive safety net.
A Trustworthy Approach: Relevant Life Plan Trust
A key aspect of any relevant life policy is the relevant life plan trust. This ensures that the benefits are paid directly to the director or employee's family or chosen beneficiaries without delay or complications. Executive Life assists clients in setting up these trusts, ensuring a smooth and efficient process. The trust arrangement also aids in maximising the tax efficiency of the policy, a cornerstone of Executive Life's approach.
Incorporating Death in Service Benefits
Relevant life plans are essentially a death in service benefit for small companies and SME's , providing a lump sum payment to the employee's family in the event of their untimely death. This benefit is often a primary concern for company directors and employees alike, who seek to secure the financial well-being of their families. Executive Life's plans are designed to offer generous relevant life death in service benefits, further enhancing the appeal of relevant life insurance.
Limitations for various business Structures
Relevant life plans can only be used by limited company owners who are based in the UK. They cannot be used by limited partnerships or by sole traders. Executive Life can arrange life insurance policies for these entities but, however this will not be a relevant life plan.
Prioritising Employee Welfare
At the heart of Executive Life's philosophy is a commitment to the welfare of employees and their families. By offering relevant life insurance, companies not only provide a valuable employee benefit but also demonstrate their investment in the well-being of their team. Executive Life aids in this endeavor, ensuring that each policy is crafted with the utmost care and consideration for the needs of the employee and their family.
Executive Life's expertise in relevant life insurance transforms the way businesses approach employee benefits, combining financial savvy with a compassionate understanding of the needs of both the company and its employees. Stay tuned for further insights into how relevant life policies can redefine your approach to life insurance and employee benefits.
Frequently Asked Questions
What is the difference between life insurance and relevant life insurance?
Life insurance typically covers individuals and is a personal financial commitment, with premiums paid from post-tax income. In contrast, relevant life insurance is a corporate policy, where premiums are paid by the business. This arrangement offers tax benefits such as corporation tax relief and no national insurance contributions or income tax, making it a more tax-efficient solution.
Who is eligible for relevant life?
Relevant life policies are ideally suited for employees and company directors of limited companies. They are especially beneficial for high earners who want to maximise their life cover without affecting their pension lifetime allowance. Additionally, relevant life plans are an excellent choice for small businesses that may not have enough employees to warrant a full group life scheme.
