A Relevant Life Plan offers a cost-effective way for an employer (in most cases the employer is a director of their own limited company) to arrange Life Cover on the life of an employee (normally the director), with the benefit payable to the employees family or financial dependents.
This should be tax efficient for employers and employees, as long as it meets certain legislative requirements. The premiums are tax deductible for the employer and are not classed as P11D benefits for the employee.
A Relevant Life Plan is designed to pay a lump sum to the employee’s family if the employee dies whilst they are employed by their current employer, while the plan is in place. It will also pay out if the employee is diagnosed with a terminal illness, with life expectancy of less than 12 months. Premiums are paid, and the policy is owned, by the employer.
It also offers continuation options if the employee leaves or changes employment.
