Tyas & Company
Chartered Accountants, Registered Auditors, Tax, Financial & Business Advisors

Relevant Life Plans

Relevant Life Plans – Strange name but a handy product

Let your company pay your life insurance

A relevant life policy is a tax-efficient death-in-service product for individuals within a company.

It 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 person covered dies or is diagnosed with a terminal illness whilst employed during the term. A Relevant Life Plan is paid for by the employer. 

Who is it aimed at? 

  • Employers looking to provide 'death in service'  benefits, but with too few employees to set up a group scheme.
  • Directors wishing to provide their own individual ‘death in service’ benefits without taking out a scheme on all employees.
  • High earning individuals, such as directors, where ‘death in service’ does not form part of their ‘lifetime allowance’ (£1.5 million 2012/13). 

Relevant Life Plans are not available where this is no employer/employee relationship. For example, sole traders, equity partners of a partnership or equity members of a Limited Liability Partnership. 

So why a handy product?

Relevant Life Plans are similar to most other types of life cover except they aim to provide a tax efficient benefit provided by an employer for an employee.

 Relevant life policies are not treated as a benefit in kind and they’re an allowable expense for the employer. Providers can settle their own level of cover, up to 20 time’s annual salary

A Relevant Life Plan is designed to be written in a discretionary trust at outset, with the employee’s family and dependants as beneficiaries.

Contact Tyas & Company on 01293 843900 for help and advice on this tax saving benefit 

 

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Registered to carry on audit work in the UK by the 
Institute of Chartered Accountants in England and 
Wales and authorised and regulated by the 
Financial Conduct Authority for investment 
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Telephone: 01293 843900

Fax: 01293 614312

Email: reception@tyas.com  

5 East Park, Crawley, West Sussex, RH10 6AN