Everything you need to know about relevant life cover
WHAT ARE THE AGE LIMITS FOR RELEVANT LIFE COVER?
Relevant life cover is a tax-efficient death-in-service benefit, that is established and paid for by employers on the life of an individual employee. Whilst in theory any business wishing to provide a death a death in service benefit for a single employee could take out Relevant Life cover, it’s perhaps most commonly used for business owners running their own ltd company and where they are the sole director & employee.
RELEVANT LIFE SUM ASSURED LIMITS – HOW INSURERS COMPARE
The sum assured is the heart of any life insurance policy. As the amount that is paid out to loved ones upon the death of the life assured, it is really what life cover is all about. The payout will be based on a multiple of the life assured’s income, so for advisers helping business owners to set up policies for their staff, it is important that the cover reflects as full a picture of the life assured’s earnings as possible.
HOW DO INSURERS COMPARE IN OFFERING RELEVANT LIFE CONTINUATION OPTIONS?
Relevant life insurance is a tax efficient life insurance policy, providing a single employee with a death in service benefit. There are numerous benefits of relevant life insurance, particularly the favourable tax status and fact the cover does not count towards the employees pension lifetime allowance. Relevant life plans also have portability built into them, sometimes known as the continuation option, which is the subject of this insight.
