Nothing is more frustrating than seeing your hard-earned money handed over to the taxman. When you’ve worked tirelessly to save, invest and collect valuable assets, you want to protect them from unexpected events. There are several individual insurances out there, but relevant life insurance is the only policy that protects your family and has generous tax advantages.
Acting as a type of ‘death in service’ policy, relevant life insurance is a tax-efficient way for companies to arrange life insurance for directors and employees. This means any payouts are financed by the company and seen as a pre-tax trading expense. Written as a simple Trust document, relevant life policies are a type of life insurance exempt from income tax, inheritance tax, capital gains tax and National Insurance fees.
This type of cover can be applied to all colleagues, from interns to CEOs and Directors, allowing companies to protect their income and benefits, as well as valuable income for their families. It also costs 30-40% less than arranging individual life policies. For example, £1m of life cover can cost as little as £42pm for a 36-year-old man in good health or £70 pm for a 42-year-old*.
As a result, relevant life insurance is often cheaper than paying premiums from salaries or dividends. It also costs a lot less than servicing, insuring and taxing a single supercar for the year but brings you complete peace of mind that your investments and your family’s future are secure.