INSURANCE ISSUES - What is Relevant Life and how can it help?
What do we do?
We are strong believers in advice. We like to be sure that our clients have the correct type of cover to meet their requirements. We like to be sure our clients fully understand what they have and why we have arranged it. We want to be sure that should a client need to claim the plan we have arranged will pay out the sum assured to the right people at the right time. This is the value of advice.
SO - What is Relevant Life and how can it help? Put simply, it’s an alternative, tax-efficient way for an employer to provide a lump sum death benefit for an employee without the need to set up a group life scheme.
Have a look at this short video and give me a call or email me for further info. and as a recap have a look at the guidelines below..
A relevant life policy can be used in the following circumstances:
• Where a small business doesn’t have enough employees to qualify for a group life scheme.
• Where employees have substantial pension funds and they don’t want the benefits to form part of the lifetime allowance under their pension. The premiums
paid for the relevant life policy won’t impact the employee’s annual allowance either.
• Where you want to provide benefits which exceed the amounts provided by the main company scheme.
In what circumstances can a relevant life policy not be used?
A relevant life policy can’t be used for business loan cover, business continuity or business succession planning.
Who can apply for a relevant life policy?
If you want to apply on behalf of an employee,
you can be:
• a sole trader (as a business with employees); • a partnership; • a limited liability partnership; • a limited company, or
• a charity.
However, as the following aren’t employees, they can’t be covered under a relevant life policy:
• A sole trader (in their personal capacity as business owner)
• An equity partner in a partnership
• A member of a limited liability partnership
Why do we do what we do?
We have now been in business long enough to know that some of our clients - or their family members - do not have a long and fruitful life. We have had a number of situations where family members contact us with sad news about the death of a client. We have also received calls from clients who have been made redundant or that have suffered serious illness or accident. We know that it is easy for us to tell clients the statistics that we receive from insurance companies and the NHS, but when you have received the call about such sad events you know the statistics are in fact people and their families.
For specialist professional advice and a personal mortgage and insurance service please contact us