Directors and Business Owners Could Save 30/40% on Life Insurance.
Elevate specialises in life insurance for business owners and directors. Relevant Life insurance is one of the most tax efficient ways to arrange life insurance and can be 30/40% cheaper than arranging personal life insurance.
We Partner With Leading Life Insurance Providers.
At Elevate we discuss your requirements, options and if suitable arrange one of these tax efficient policies from our panel of insurers – AIG, Aviva, Zurich and others. Our service is free and without obligation.
What Is Relevant Life Insurance?
- Pays dependents, or families of employees, or directors a lump sum to make up for income/wealth that will no longer be generated.
- Paid for by employers for the benefit of directors/employees, a type of ‘death in service cover’
- Tax efficient for employers as premiums are usually treated as an allowable business expense.
- The taxman does not treat premiums paid by the employer as a P11D benefit.
- Neither employee nor employer has to pay National Insurance on the premiums.
- The employee doesn’t have to pay income tax on the benefits and any pay-out is not usually subject to inheritance tax or subject to capital gains tax.
- Pay outs don’t form part of an employee’s lifetime pension allowance nor will premiums count as part of their annual allowance.
- Up to 25x salary in cover is usually possible.
- Benefits must be written into a Trust for employees’ family, dependents or beneficiaries.
How we help.
At Elevate we’re classed as a non-advised brokerage for life insurance. We’ll use the personal information you provide, to identify suitable policy options, allowing you to make an informed decision, placing you in complete control of your final decision.
Elevate Tax Efficient Life Insurance FAQs.
Can I keep the policy if I change my employer?
Yes policies are portable if the new employer pays the premiums, alternatively they can be converted into an individual life policy.
Are payouts tax-free?
Usually they are exempt from Capital Gains Tax and Inheritance Tax when they are written into trust.
Can the Company be the beneficiary of the policies?
No, the employees and the estate must be the beneficiaries via a Trust.
Why do I need to write the policy into Trust?
This is a strict condition of such a policy and ensures the benefits of the policy go to the employee/director’s estate. The trust may also streamline payment of benefits and mitigate any IHT obligations.
Is setting up a Trust agreement complicated?
No, insurers have standard forms although you may wish to obtain independent legal advice.
Do these policies impact my lifetime pension allowance?
Usually it does not but you would need to double check with a tax advisor or IFA.
We treat all of our clients as individuals. We have time to talk, we listen and understand what you need. We are here for clients throughout the insurance process, arranging customised cover, adapting policies as things change, reviewing the market every year and supporting them with any claims. Your personal advisor is available on a direct dial.