As a business owner, you can use a tax-efficient policy to provide a financial safety net for your loved ones should the unthinkable happen to you.
Do you have dependants - such as school age children, a partner who relies on your income or a family living in a house with a mortgage that you pay? Life Insurance can provide for them if you die. Such a loss can have a massive impact on your remaining family and their quality of life. The last thing you want is for them to be left with a financial burden.
Only 30% of businesses have heard of Relevant Life Plans*. Now you know, take advantage of the benefits!
Added peace of mind - tax free. Relevant Life Plans offer some very special advantages to directors and employees of small businesses, most notably tax efficiency. Watch our video to find out more and see how you can save up to 50% on your premiums.
*Source: Legal & General's state of the nation's SMEs report (5th edition)
Did you know?
of Life Cover claims were paid in 2020 (ABI report)
FREE Expert Advice Contact one of our friendly Advisers on 0800 988 3637
John Davies is employed as a Managing Director of a manufacturing business in Cardiff. John leads a healthy lifestyle and does plenty of exercise, but worries that someday he may not be around to support his wife, Caroline. The company takes out a Relevant Life Plan, setting his cover at £1 million. John nominates Caroline as a beneficiary.
If the worst does happen and John dies during the term of the policy, the Relevant Life Plan trustees would receive £1 million. This could then be paid, tax free to Caroline, giving her enough money to pay off the mortgage on the family home and hopefully live comfortably for years to come.
The flow chart below shows how it works:
The importance of Trusts All Relevant Life Plans must be written in Trust. This is one way of helping to ensure that the policy proceeds are paid to those who you want to receive the money and without unnecessary delays.
Beneficiaries can receive the money at the right time tax efficiently
Probate is avoided.
Intestacy law is avoided
Inheritance Tax (IHT) liability can be avoided/reduced
Andrew Dukes is Managing Director of a furniture design business in London. He already has a Life Insurance policy but with him and his wife about to have their third child, he wants to increase his cover to help make sure his family would be financially secure if he dies. His existing plan doesn't allow him to increase his cover, so he decides to take out more cover with a new Life Insurance policy.
Andrew's Protection Adviser at Vita presents two options to highlight the differences and he doesn't hesitate to choose the Relevant Life Plan. You can see the sums below that made his decision easy.
The Relevant Life Plan is particularly beneficial for Andrew because he's employed as a salaried director and is also a shareholder of the business, so all of the savings go to him. If he were to pay for his Life Insurance personally it would cost £1,570 every year. By his company using a Relevant Life Plan to provide cover, it only costs £800 each year. That's a saving of almost 50%.
There are lots of good reasons to choose a Relevant Life Plan. But it all boils down to tax-efficient Life Insurance for directors and employees, and what business doesn't want that?
Our partners at Royal London have produced a guide all about Relevant Life Plans, which explains some of the finer detail that you or your Accountant may like to know. You're welcome to download and email the guide if you like.
Yes. Relevant Life Plans are a cost-effective way of offering Life Insurance to you and your employees. Its tax efficient and premiums can be treated as an allowable business expense by HMRC. With Corporation tax relief available and no additional income tax or NI to pay, it's a fantastic option for both you and your employees.
We don't do off-the-shelf. We genuinely care about getting the right cover for you. Your circumstances may be similar to someone else's, but never identical. Our consultative approach means that you'll feel listened to and understood. Also, you'll get a solution that's tailored to your personal needs.
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Vita is a trading name of Vita Financial Ltd, which is an appointed representative of Capital Protect Ltd, which is authorised and regulated by the Financial Conduct Authority. Their Financial Services Register number is 531444. Registered address: 1st Floor Tudor House, 16 Cathedral Road, Cardiff, CF11 9LJ. Company No. 7266691, registered in England and Wales. The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. Calls may be monitored/recorded.