What is relevant life Insurance?
Relevant Life premiums are paid directly by a business and your family will receive a pay out if you die.
Unlike keyman insurance, no money goes to the business – funds are to provide financial support to the deceased’s family.
What are the benefits of relevant life insurance?
Generally, relevant life cover is an excellent, tax-efficient way to offer life insurance for single individuals, contractors, or company directors within a business.
It’s ideal for smaller businesses because these don’t normally qualify for group life insurance (or death in service cover) due to their limited employee numbers. Also, it works well where a Director is working through his or her limited company.
This type of insurance is tax-efficient because HMRC views it as an allowable ‘business expense’. You can claim it against your company tax bill.
Benefits paid out are tax-free.