Relevant Life Plans?
What are Relevant Life Plans?
A Relevant Life Plan is a term assurance plan available to employers to provide an individual death in service benefit for an employee. It is designed to pay a lump sum if the employee dies whilst employed during the length of the policy. It will also payout if the employee, whilst employed, is diagnosed with a terminal illness and meets the definition at any time during cover. A Relevant Life Plan is paid for by the employer.
Why choose a Relevant Life Plan?
If you run your own business and have personal life insurance in place to financially protect your family, did you know that you could make a substantial tax saving on your premiums by taking out what is called ‘relevant life insurance’?
Relevant Life Plans can save you up to 52% on the cost of Personal Life Insurance!
Company directors paying 40% personal income tax could save up to 52% on their life insurance premiums (up to a 36% saving for those on a 20% tax rate) when compared to having personal life cover in place. This means that someone with a £50 a month personal life policy could save £7,800 over a 25 year term, by taking out relevant life cover via a relevant life plan instead.
Also if you offer these perks to employees they can be a differentiator between you and your competitors or can even potentially save you money by saving on salaries, due to other things being in the package for employees.
*Please note that 2 Exp Financial Services Limited does not offer advice on taxation matters. You should contact your accountant or other suitably qualified person to confirm whether this product is appropriate for your circumstances.
Why choose our Relevant Life Plan?
- More cover, less questions – up to 25 x remuneration multiples and while some providers need supporting financial evidence at lower levels of cover, we don’t ask to see financial evidence until the benefit exceeds £3.5 million.
- Continuation Cover* – if your client leaves their company they can convert their RLP to a personal plan or move it to a new employer without the need for further medical evidence or underwriting. . We’ve now increased the time we need to be informed of an employee leaving the company from 30 days to 90 days.
- Price Beater – for cover over £600,000 we will not be beaten on like for like price and that is a promise.
- Dedicated support – our RLP service team can help you throughout the whole process, from submitting your application to ensuring all trust documentation is completed correctly.
- Guaranteed Insurability Option* – increase your client’s level of cover for salary increases as well as mortgage increases, moving house, getting married and becoming a parent.
- Accidental Death Benefit* – While your client’s application is being underwritten they are automatically covered.
- Simple as possible – We have a straightforward combined application and trust pack which will allow you to complete the application in one smooth process.
“A relevant life plan is a term assurance plan available to employers to provide an individual death in service benefit for an employee or all of their employees.”
Want to Know more about Relevant Life Plans?
Please feel free to book a free consultation with a specialist today.
If you are interested in booking a free consultation in order to discuss how Relevant Life Plans can save you money and add value to your business please get in touch?
Other Business Protection Products available from The Business Protection Company
Key Person Cover, or Key Man Insurance is a business insuring itself against the financial loss it would suffer if a key person in their business died or had a critical illness.
A business will is an agreement that usually takes the form of a buy and sell option. It ensures the smooth transition of ownership of a business on the event of death, total and permanent disablement or trauma of an owner.
Share Protection allows the remaining partners, shareholding directors or members to remain in control of the business following the death of a business owner.
Business Loan Protection helps businesses pay an outstanding overdraft, loan or commercial mortgage, should a key person die or suffer from a specified critical illness (if chosen) during the length of the policy.
*Please note for these insurance products terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.