Personal life insurance paid for by your company
Unlike traditional life insurance, a relevant life plan, is structured as a business expense, making it tax-efficient policyholder
What is life insurance?
Key Features of Relevant Life Policies:
1. Tax-Efficient:
- Premiums are usually treated as a business expense, so they can be offset against corporation tax.
- Benefits are generally paid free of Income Tax, National Insurance, and Inheritance Tax (if structured correctly in trust).
2. Available for Employees:
- Covers salaried employees, including company directors.
- Not available for sole traders, partnerships, or equity partners unless structured differently.
3. Benefit Payment:
- Pays a lump sum to the employee’s beneficiaries if they die or are diagnosed with a terminal illness (with less than 12 months to live) while the policy is active.
- The payout is typically held in trust to ensure tax efficiency and fast distribution.
How does life cover work?
• Select the amount and duration that is right for you
• Choose your beneficiaries, such as family members, who will receive the payout (death benefit) if you pass away
• Customise your policy with extra benefits like critical illness or accidental death coverage
• Upon your passing, your beneficiaries receive a lump-sum payment, tax-free in most cases
Here at Steel River Business Insurance, our team have over 20 years of experience within the industry, working with the largest providers, we’ll ensure you receive the very best advice, guidance and support.
With our friendly team, there’s no waiting in call centre queues, you’ll receive a personal service, tailored exactly to your needs.