A brief overview of Relevant Life insurance
A Relevant life policy is a death in service arrangement, which provides a lump sum on the death traditionally for Directors of Ltd companies, Employees of a company or for high earning individuals. Self Employed can also be included in this type of policies.
It is a tax-efficient benefit which can be payable to the Director/Employee’s dependents through an appropriate discretionary trust.
Relevant life policies are an alternative to group life schemes for small businesses that do not have enough eligible employees to warrant a group life scheme. They can also be used to provide high earning employees, who already have substantial pension funds, with a lump sum on death that will not form part of their pension lifetime allowance.