February 24th, 2016

How to get your company to pay for your life insurance


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.

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Alison obtained a First class degree in Accountancy and Management at UCLAN University. She then went on to qualify as a certified accountant in 2006 and became a founder member in 2011.

Alison trained at a practice in Liverpool and, within her 10 years there, she developed as an accounts manager and obtained a varied portfolio of clients which has provided her with a range of experience in accounts, audit, VAT and taxation.
Alison specialises in giving sound jargon-free advice to a range of small and medium sized businesses.

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