Relevant Life
Our advisers help business owners implement an
appropriate relevant life policy to benefit their employees
and/ or family, in the event of critical illness or death.
Would you like to speak to a qualified adviser about how
your business can benefit from relevant life?
Insurance For Directors & Employees
Relevant life is a tax-efficient method of providing a company death in service benefit. As a business owner, you may decide you wish to offer this benefit to employees and their families in the event of death or a critical illness.What is relevant life insurance?
When you select relevant life, your cover can be level term or inflation linked. Level term means you’ll be covered for a set amount of money until the policy ends. Inflation linked would give you the benefit of the cover being linked to inflation rates.
Most policies also give you flexibility to add new employees as your company expands and many other benefits, but these would be tailored to your company needs and objectives.
Our qualified advisers can explain the process of relevant life cover and help you discuss the benefits, costs and ensure the cover is placed into trust for the beneficiaries.
Relevant life cover for employees
As the business owner, you maintain the policy and it’s arranged on a “life-of-another”/ individual basis. The beneficiary is the employee and/ or their family. The cover is typically a multiple of the employee’s salary and their age. For instance, 35 times the salary of an 17-29 year old.
Most relevant life policies for companies come with additional benefits, which can help your company and your employees. For example, some policies come with access to a 24/7 GP service.
The first stage of the process is to have an informal conversation with one of our qualified advisers. We will listen to your needs and explain how we can assist you. The next stage is to find a relevant life policy that best meets your needs and present our findings, so you can make an informed decision about which policy is right for you.
Relevant life can only be paid out on death, so there’s no critical illness cover.
Send An Enquiry
Relevant life questions?
If you have questions or would like to know more about relevant life cover for your business and employees, then please complete our enquiry form.
Our regulated business protection advisers will be able to explore policies tailored to your needs and provide a comprehensive plan that meets your expectations and budget.
Frequently Asked Questions - Business Owner Life Insurance
What is Relevant Life Insurance?
Relevant Life Insurance is a type of life insurance policy that is designed to provide tax-efficient benefits to company directors, employees, or shareholders.
Who is Relevant Life Insurance suitable for?
Relevant Life Insurance is suitable for company directors, employees, or shareholders who want to provide a death-in-service benefit to their loved ones. It’s particularly useful for small to medium-sized businesses, partnerships, or limited companies.
How does Relevant Life Insurance work?
Relevant Life Insurance is a trust-based policy that is owned by the company, but the benefit is paid out to the employee’s beneficiaries. The premiums are typically paid by the company, and the policy is designed to provide a tax-free benefit in the event of the employee’s death.
Are there any restrictions on who can participate in Relevant Life Insurance?
Yes, there are some restrictions on who can participate in Relevant Life Insurance. For example, only employees who are eligible for a death-in-service benefit can participate in the policy. Additionally, the policy must be purchased through a qualifying insurance provider.
Are there any differences between Relevant Life Insurance and Group Life Insurance?
Yes, there are some key differences between Relevant Life Insurance and Group Life Insurance. Group Life Insurance is a traditional life insurance policy that is typically provided by an employer to all employees. Relevant Life Insurance, on the other hand, is a trust-based policy that is designed to provide tax-efficient benefits to specific employees.
Can I use other insurance services too?
Yes, you may also wish to consider income protection or critical illness cover. The advice and solutions can be tailored to meet your specific needs.
Frequently Asked Questions - Death In Service
What is death in service insurance?
Death-in-service insurance is a type of insurance coverage that provides a lump sum payment to the employee’s family or beneficiaries in the event of the employee’s death, whether it occurs during or outside of work. The insurance policy is usually paid for by the employer as a benefit to their employees.
What are the benefits of death and service insurance?
The benefits of death and service insurance include:
- Financial protection for the employee’s family in the event of their death
- Reduced financial burden on the employee’s family
- Ability to pay for funeral expenses, outstanding debts, and other financial obligations
- Tax-free benefits to the employee’s beneficiaries
How does death and service insurance work?
Death and service insurance typically works as follows:
- The employer pays a premium to purchase a group life insurance policy that covers all eligible employees.
- The policy pays out a lump sum amount to the employee’s beneficiaries in the event of their death.
- The amount of coverage varies depending on the employer’s policy and the employee’s salary.
- Employees may also have the option to purchase additional coverage at their own expense.
What types of employers offer death and service insurance?
Death in service insurance is proving to be a growing employee benefit offered by businesses of all shapes and sizes. It demonstrates that a business values their employees and wants to protect them and their family. Employers also use death in service as a recruitment and retaining tool for employee packages.
Are there any limitations or exclusions to death and service insurance?
Yes, there may be limitations or exclusions to death and service insurance, including:
- Coverage may be limited to certain types of deaths, such as accidental death or death due to illness.
- Coverage may not be available for certain types of employees, such as part-time or temporary workers.
- There may be waiting periods before coverage becomes effective.
- Coverage may be limited to a certain amount or percentage of the employee’s salary.
Can employees purchase additional coverage beyond what is provided?
Yes, employees can purchase additional cover personally via an insurance adviser. We can also assist with this for your employees. They may wish to protect themselves with income protection or critical illness cover, as well as life insurance.
What happens if we need to make a claim?
Don’t worry, your adviser will be there to help you through the process of claiming with the insurance provider.