Many life insurance policies will cover its workers in case of ‘death in service’ – but is it tailored to their specific needs? Moreover, would it be available to companies with a small workforce? Now, small businesses can give their employees the big benefits they deserve – in a way that proves cost-effective to the business itself.
Relevant life policies and plans are a tax-efficient and cost-effective option for those companies looking to take out cover for their employees. Compared to ordinary life policies, businesses could stand to save almost 50% on tax. How? The policy is a tax-deductible business expense rather than a benefit, which also means no National Insurance contributions are required from the company or its employees.
* An employer wanting to treat Relevant Life Policy payments as an allowable business expense should seek tax advice from the employer’s local inspector of taxes.
Flexible enough to suit any model, the relevant life policy is a cost-effective solution – for employees as well as employers. It’s not just small businesses and their employees that can take advantage of these plans. Tax benefits are available to directors of limited companies, should the premiums for life insurance be paid by one company instead of personal post-tax income. The policy’s benefits don’t count towards your Lifetime Allowance, either – ideal for those in higher income brackets.
It may well pay to shop around, too. Some of the market’s leading insurers are keen to undercut their rivals, offering to beat the prices of the competition. Others are thinking outside of the box with regards to the benefits of their respective policies, with discounts and even reward systems on the table from certain providers.
Interested in relevant life policies? Get in touch with us today to explore your options.