A Director of his own limited company in Sandbach contacted us, as he was concerned that his wife and family would not manage financially in the event of his death.
Having calculated and agreed with him the amount of life assurance cover required, we outlined the types of arrangements available that might provide the required benefits. In this instance, rather than arranging life cover paid by him personally, we suggested a Relevant Life Plan.
This is available to employers to provide tax efficient life assurance cover for an employee; the premiums are paid for by the employer and should qualify for Corporation Tax relief. This helps to reduce the cost of cover very significantly, as compared to paying the premiums personally from taxed income. Plus there are no Income Tax or National Insurance implications for either the employer or the employee.
By following our recommendation, our client was able to save on the cost of his life assurance cover and he is now assured in the knowledge that his family will be financially secure on his death, as they will receive a tax-free lump sum from his Relevant Life Plan.
This is also a very cost-effective way to offer life cover to employees if your business is not eligible for a group life assurance scheme.
For more information on Relevant life insurance please do not hesitate in contacting Stacey Gibson on 01270 758057 or contact us