A relevant life plan or a life policy is a term assurance plan which is offered by several employers and companies to their employees in order to get the in-service death benefit. There are several companies that offer services of legal and general relevant life policy. The policy is designed in order to offer a lump sum amount to the family of the deceased when the person dies during service or is diagnosed with a terminal illness during employment term. This policy amount is paid by the employer.
Who can avail the benefit of legal and general relevant life policy?
- This life plan is for employers who aim at providing ‘ death in service’ benefits to their employees. If there are few employees then the employers can easily set a group scheme too.
- Even directors that are willing to provide ‘death in service’ benefits of their own individual without including all the employees of the organization can opt for this policy.
- Any other high earning individual where ‘death in service’ is not a part of their lifetime allowance. The limit of high earning is around 1.5 million euros as per 2012/13.
- These plans cannot be used in case there is no sort of employer and employee relationship. This is true in case of equity partners, sole traders etc.
What makes relevant life plans so much cost effective?
Just like any other life policy, this relevant life plans are also similar but they aim to provide better tax efficient benefit which is provided by the employer to the employee. There can be several benefits and potential tax savings that an employee, as well as an employer, can avail using this plan.
How much coverage of insurance can you have?
The amount which is insured in the relevant life policy is same as the death in service package offered by the employer and you can do multiple reimbursements of the amount too. If you are the director of the company then the remuneration amount considered for the policy is salary plus bonuses and dividends. The additional amount apart from salary may vary according to the employer as well as the policy provider.
So if you are an employer then you can avail this policy from a trusted organization in the UK and provide lucrative benefits to your employees and get tax benefits in return.