What is a Relevant Life Plan?
A Relevant Life Plan is a term assurance plan available for employers to provide a death in service benefit for an employee. It is designed to pay a lump sum if the person covered dies or is diagnosed with a terminal illness, whilst employed during the term. A Relevant Life Plan is paid for by the employer.
Who is it for?
- Directors wishing to provide their own individual ‘death in service’ benefits without taking out a scheme on all employees.
- High earning individuals, such as directors, where death in service does not form part of their ‘lifetime allowance’.
- Employers looking to provide ‘death in service’ benefits, but with too few employees to set up a group scheme.
Relevant Life Plans are not available where there is no employer/employee relationship. For example, sole traders, equity partners of a partnership or equity members of a Limited Liability Partnership.
What makes it cost effective?
Relevant Life Plans are similar to most other types of life cover except they aim to provide a tax efficient benefit provided by an employer for an employee.