Relevant Life Cover
Providing peace of mind for your staff will be of benefit to both them and your business. A *tax efficient relevant life plan can help to attract and retain the best people. This in turn can help your business to thrive.
Relevant Life Cover is a tax-efficient life insurance policy, allowing companies (not available to sole traders, partnerships or Limited Liability Partnerships) to offer a death-in-service benefit to its employees (including salaried directors). It's set up by the company and pays out a lump sum on the death (or diagnosis of a terminal illness) of the person insured.
It is paid for by the employer and must be written in Trust before the policy can start. In the event of a successful claim the benefits are paid to the trustees who are then responsible for their distribution.
Relevant Life Cover won't form part of the employee's *pension lifetime allowance and the lump sum payment will usually be free from Income Tax.
*Please note that Acorn Mortgages does not offer advice on pension or taxation matters. You should contact your accountant or other suitably qualified person (see our associates) to confirm whether this product is appropriate for your circumstances.
The plan will have no cash in value at any time, and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
Trust and Tax Planning advice are not regulate by the Financial Conduct Authority.