What is it?
A relevant life policy in simple terms is a very tax efficient alternative to a death in service benefit. If your employee dies and the relevant life policy is in place, his or her family will be paid a cash lump sum. The employee does need to be employed by the company before the employee’s family can benefit. The relevant life policy could potentially also include terminal illness benefit, which will pay out to the employee should the life expectancy be less than 12 months.
The relevant life policy needs to be placed into trust which it is why it can be tax efficient for the employee and the employer. Quite a few providers these days offer a signature free trust, which speeds the process up. Call us now 0333 210 0082 for more information about trusts and when it is relevant to set one up