Well, a Relevant Life Policy is one of the most cost-effective alternatives to a death in service along with a number of offers that provides you with several financial protections in order to ensure individual as well as their family members. Also, the premiums of the Relevant Life Policy are paid by the employer on behalf of the staff member or the director.
The Tax benefits of a relevant life policy
Just because a company pays your monthly premiums on the life policy, the owner, however, is not treated with the benefits of the kind, this means:
- The policies can be compensated against the corporation tax as they are highly considered as a business expense.
- Also, the premiums do not form any part of the lifetime allowance of the person when it comes to pensions or other savings.
The Benefit of Relevant Life Cover for Directors:
Most businesses in the UK have some types of life insurance policy for their employees. In fact, these policies are said to be paid for or by the directors personally by using their own pre-taxed income. In case a business director is paying for their personal life insurance by their business, they will automatically receive a penalty in terms of P11D benefit-in-kind.
Recently, the only way for a company to pay for a Legal and General Relevant Life Policy was to take the death in a service policy. Sadly, for several business owners, these policies were tailored towards the larger business, ensuring a little upwards for benefiting around 10 employees
The Benefit of Relevant Life Policy for Employees:
Being a business owner, trustee or even a director, you tend to look after your employees that must be your top priorities. Also, a relevant life policy can really help you to do just that along with presenting your business with valuable tax benefits.
We understand that attracting and maintaining a top talented staff can really be a big challenge for all businesses. Having the pay raising all across the UK it is being harder to come by as more candidates now consider availing the additional benefits that are offered by the employers when selecting a perfect job. Here, in such a case a relevant life policy comes with a number of benefits that a business can offer to their employees, especially to those with family or have the mortgage to protect.