Relevant Life Cover Services
Taylor James provides leading advice in the finance, investment and insurance arenas. We’re committed to helping our clients secure products that meet personal requirements. We’ve frequently helped businesses to get relevant life cover for valued employees. We provide further details on relevant life cover and how we can help below.
What is relevant life cover?
Relevant life cover is a type of death-in-service policy that businesses can take out to cover one of their employees. It will pay out to the employee’s family should they pass away while remaining employed by the business.
The policy is taken out by the business which also pays the ongoing premiums. It’s an alternative to group life insurance which is used by businesses to provide cover for multiple staff members at once.
Aside from the obvious benefits to the employee, there are tax-efficient benefits to both parties, such as:
What is relevant life cover?
- Employees don’t pay income tax or IHT on any payout
- They’re excluded from pension lifetime allowances
- They’re not treated as a P11D benefit by HMRC
- No National Insurance is paid on premiums
- Premiums can even be treated as a trading expense (can be challenged)
However, these plans must not be used for tax avoidance.
How does relevant life cover work?
Relevant life cover is taken out by a business as a type of death-in-service policy for an individual employee. The business pays the premiums. If the employee was to die while still being employed by the business, the employee’s beneficiaries would receive a lump sum payment. This payment can help with the ongoing financial commitments of the beneficiaries, as well as immediate costs, such as funeral expenses.
Relevant life cover considerations
A discussion must be had with the employee to determine the level of cover required by the policy. This includes but is not limited to:
- The employee's dependents and their financial needs
- The employee's outstanding debts and liabilities
- The employee's future earning potential
- The employee's role in the company
Further considerations will need to be made concerning coverage limits, waiting periods before the cover is active and any policy exclusions that may be in place.
Use an adviser for your life cover search
There are benefits of using an adviser to source relevant life cover. An adviser can assess the employee’s circumstances to make sure only the most suitable policies are considered. This prevents a situation where the policy chosen doesn’t meet business expectations. They can also fully explain the tax benefits of this cover for businesses and answer any outstanding questions you may have.
Taylor James relevant life cover services
We encourage business owners to schedule a consultation with a Taylor James financial adviser today. Our team are experienced in helping businesses identify and secure the relevant life cover that meets the business and employee’s needs.
Call us today for a no obligation chat about planning your financial future.
Call: 0203 859 3320
Email: contact@taylorjamesfs.co.uk
Please note:
- The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
FAQs
Financial planning for businesses is when a financial adviser provides advice and even brokering services for a business, typically regarding insurance and pension products for staff members. Financial planning services can make a company more attractive to talented professionals while also providing the business with additional peace of mind.
Our financial advisers help clients by first getting to know their business and its long-term goals. Our qualified advisers will then source the most suitable insurance and pension products that could be utilised by the business. Our team provides essential knowledge and recommends products based on an understanding of the company’s needs. Taylor James advisers do not pressure business owners into choosing a product that has been recommended.
Our business financial planning service is open and available to businesses of all sizes across all industries. We encourage small and medium enterprises as well as large global corporations to contact our team for support when required. Our team also offers financial planning for individuals.
Yes, Taylor James advisers take a client-first approach by getting to know your needs and preferences to recommend products. We do not work the other way around; this is to make sure you are only considered for the most suitable and beneficial products. Ultimately, this means your business does not need to know what product it needs before getting in touch – that’s our job!
FAQs
Financial planning for businesses is when a financial adviser provides advice and even brokering services for a business, typically regarding insurance and pension products for staff members. Financial planning services can make a company more attractive to talented professionals while also providing the business with additional peace of mind.
Our financial advisers help clients by first getting to know their business and its long-term goals. Our qualified advisers will then source the most suitable insurance and pension products that could be utilised by the business. Our team provides essential knowledge and recommends products based on an understanding of the company’s needs. Taylor James advisers do not pressure business owners into choosing a product that has been recommended.
Our business financial planning service is open and available to businesses of all sizes across all industries. We encourage small and medium enterprises as well as large global corporations to contact our team for support when required. Our team also offers financial planning for individuals.
Yes, Taylor James advisers take a client-first approach by getting to know your needs and preferences to recommend products. We do not work the other way around; this is to make sure you are only considered for the most suitable and beneficial products. Ultimately, this means your business does not need to know what product it needs before getting in touch – that’s our job!