Relevant Life Plan | Business Protection

Cover that shows employees you care

A relevant life plan helps employees feel assured that, if they pass away, their loved ones will have financial protection.

Relevant Life Plan - What should I keep in mind.jpeg

What is a relevant life plan?

A relevant life plan, also known as relevant life insurance, is a death-in-service benefit that businesses can offer employees and directors. It’s a tax-efficient policy that avoids the need to open a group life assurance scheme. For that reason, it’s a popular option amongst small to medium enterprises.

If your employee passes away while working for you, a relevant life plan out in lump sum to their beneficiaries. It's an excellent way to demonstrate that you value your employees: it reassures them that their loved ones will be financially protected should things go wrong.

Some relevant life plans will also pay out upon diagnosis of a terminal illness so that families and loved ones are taken care of should an employee no longer be able to work.

What should I keep in mind?

Relevant life plans are seen as tax-efficient policies because they are allowable expenses. They reduce the amount that businesses are required to pay in corporation tax.

Recipients’ families will not be required to pay tax on the lump sum in the event of their loved ones’ passing.

It can be helpful to consider how much cover your company can afford to provide. In most cases, you can take out policies that pay between three to ten times your employee’s annual salary.

Deciding which employees should receive this benefit is also an important step to take. Some companies only offer this benefit to directors, while others choose to insure every employee.

You'll need to consider:

How much cover you can reasonably offer employees
Which employees and directors should receive this benefit
Whether taking out a relevant life plan is your most tax-efficient option.

How can Trulife help?

Trulife can help you to assess the viability of offering a relevant life plan benefit to your team. Working with specialist business insurance providers, we’ll find policies that represent the best value for money. In many cases, we can offer exclusive cover options that aren’t available anywhere else.

We'll offer guidance on:

The ins and outs of relevant life plans

How much cover employees and directors can receive

Finding a policy that meets your business’ requirements

What next?

If you’re thinking of offering relevant life insurance to your employees or directors, talk to Trulife. We’ll quickly connect you with a member of the team and find a policy that works as hard as your team.

Let's chat