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Tax-efficient life insurance for your employees

Protect your business and your employess

Tax-efficient life insurance for your employees

At Cosgrove Brown we believe that UK enterprise should be protected and supported, and our Relevant Life Cover has been designed with this in mind. Relevant Life Cover is a type of life insurance which pays out a tax-free lump sum if your employee dies (or is diagnosed with a terminal illness).

Benefits to you

Relevant Life Cover is arranged on an individual basis with the company as the policy owner, and the employee as the person insured. The company pays for the policy but unlike group schemes; HM Revenue & Customs usually consider the premiums a business expense (so you don’t have to pay national insurance contributions).

Relevant Life Cover can also benefit smaller companies wanting to offer life insurance to their key people, but might struggle to cover the costs associated with group schemes.

Benefits to your employee

Group life insurance schemes can be very restrictive, but Relevant Life Cover can be used to provide an additional benefit in a tax-efficient way. Unlike group life insurance, staff don’t pay national insurance contributions on the premiums.

Helping you attract the right people

Including Relevant Life Cover as part of a reward package can help you reward and retain key personnel, and attract high-calibre staff to your business.

How it works

Relevant Life Cover is taken out on the life of the employee and written in trust. This means if the employee dies, the claim is paid free from inheritance tax to their beneficiaries (usually their next of kin or children). The policy is paid for by the company.

How much cover?

Just like group life insurance schemes, many employers choose to set the insurance as a multiple of salary. With some providers the maximum amount of cover available is £10 million; don’t worry; we can help you decide on an appropriate amount of cover.

What else do you need to know?

Relevant Life Cover is only available to business who are UK registered and salaried employees permanently living in the UK. It can only cover a single life per policy and will be on a ‘life of another’ basis, which means it’s taken out by the employer on the life employee. Relevant Life Cover doesn’t have a surrender value and its main aim should not be to avoid tax.

Give us a call for a quick quote on relevant life cover for you, your business and everyone who works in it.