RELEVANT LIFE INSURANCE ADVICE
What is a Relevant Life Plan?
Relevant Life Insurance works within current legislation and allows you as the policyholder to pay your personal life insurance through your business, these payments can be made as an allowable expense. Typically, there is no inheritance tax on benefit when placed in trust.
Relevant Life policies are highly tax efficient, with perhaps the most obvious savings on your company’s corporation tax. You may also want to fully consider your personal income which may ultimately pay for insurance costs. Therefore you could also be making considerable savings on personal taxation and on NI contributions.
Although a relevant life policy is seen as business protection its really for the benefit of the life assured’s family through a trust. So its really down to the individual to decide the level of cover. We normally suggest people take into account outstanding debts such as mortgages but also think about money that the remaining family will need for general living. Relevant life insurance is can be taken out at up to 15x the persons salary.