February 24th, 2016

How to get your company to pay for your life insurance

image

I was in a meeting with the Independent Financial Advisor that we have been referring our clients to for a number of years now whenever a need is identified.

Today they mentioned a product called ‘Relevant Life Cover’ that I hadn’t come across before.

It works like ‘Death-in-Service’ benefit but is applicable to companies that are too small to have a group life-cover policy like this.

Anyway, Relevant Life Cover is a tax-efficient life insurance policy which allows companies to offer a death-in-service benefit to its employees and salaried directors.  It’s set up by the company and pays out a tax-free, lump sum on the death of the person insured.  The proceeds go directly to the employee’s family or financial dependents.

The main features are:

  1. The company can pay the premium and claim as a tax-deductible expense
  2. The benefits are usually free from inheritance tax as the policy is written into a discretionary trust
  3. You won’t be taxed as a benefit in kind personally (no P11D implications)

If you’re interested in exploring this opportunity further, get in touch with me lford@jonathanford.co.uk and I’ll arrange for the IFA to give you a call and go through the details.

Keep up to date - Sign up here

  • Want to keep up to date? We'll email you each week with a summary of everything new from the blog. Just fill in the details below.

Share this post

Filed under

Actors Business advice Freelancers Insurance Limited Companies Writers

by
Director

Louise heads our Creative Team and specialises in providing friendly expert advice to actors, writers and other entertainment professionals.

Louise trained as a chartered accountant with Price Waterhouse in Liverpool before becoming a Senior Compliance Manager in the corporate tax department of the Manchester office.

Give a Goat

Give us a referral and we will donate a goat to a family in Africa

Find out more

Our Newsletter

Enter your email address to subscribe to our mailing list.
  • This field is for validation purposes and should be left unchanged.