Relevant life protection
Relevant Life Cover is a tax efficient way of providing a death in service benefit for either you or an individual employee. As a director you may want to take out your own company-funded, personal scheme or it may be that you want to provide the benefit for your employees but your company has too few to qualify for a group scheme.
If an employee dies, or is diagnosed with a terminal illness, the effect could be catastrophic for the surviving family as, apart from the personal loss, they could face severe financial difficulties. Death in Service benefits provided by the employer can help compensate for the loss by paying a lump sum to the beneficiary.
Relevant Life Cover can provide this compensation. The plan is paid for by the employer but relies on there being an employer/employee relationship; consequently it’s not available for sole traders, equity partners or equity members of a Limited Liability Partnership.
Relevant Life Cover won’t compensate for the loss to the family, but it may help ease any difficulties caused by it.
It’s all a matter of risk management.