Relevant
Life Policy: because each one of you matters
Insurance firms are trying their best to work around
the rules and taxes in an efficient way through which their clients can
benefit. Relevant life policy was
such an efficient result from Bright Grey. The criteria of life cover of
employees and grants provided by the company had following scenario up until
now:
1. If
the employees have had any personal life insurance, it was from their own
income which undergoes income tax and national insurance diminutions.
2. Until recent years, for limited companies to support the
personal life insurance was only possible for companies that took group life
insurances. This insurance had its own loop; making it applicable if the
company wishes to insure 10 or more employees.
3. Even if the company paid for the premiums, it would be taxed
from the employee’s cut under P11D benefits.
Relevant
life policy insures the life of an employee (generally
being the directors of the company) in case of death in service and may include
other terminal reasons. It’s a policy patronized by the employer and the
relevant fund goes to employee’s dependents or other dedicated person if any.
Benefits of Relevant
life policy can be summed up in this way:
1. Since
the company pays the premiums, tax and National Insurance is not applicable and
thus the employee gets their life insurances at a cheaper real cost making it
tax efficient.
2. The
cover provided by the policy is on average 15-20 times multiple of employees
pay.
3. Relevant
life policy has
something for the company too. If your employee leaves you, RLP can be
converted to a personal plan or can be moved to a new employee.
4. It overcomes the drawback of group life
insurance as with RLP, you can insure individuals or any number of employees
you want.
5.
Relevant life policies are written in trust ensuring that the assured
sum reaches the employees dependents without any delay and inheritance tax
deductions.
http://www.relevantlifepolicy.com/ ensures to provide you tax efficient policy
solutions. It has tools for calculating math related to policies, user-friendly
video tutorials to get you the basics and professional advices for your
service.
We are waiting for you.
