Relevant Life Insurance

A great many companies offer life insurance cover to their members of staff these days, but for some employees it could perhaps be better to take out a relevant life policy instead. If your organisation wishes to offer a heightened level of protection to the individuals and their families, the team at DJC Wealth Management will be able to help.

Relevant life insurance is generally aimed at company directors, high earners and key members of the team. For the employee, it’s seen as an important benefit and an attractive perk, while for the employer it can increase loyalty and it offers a tax saving when compared to standard life cover. The insurance market is extremely competitive these days, with more and more companies offering a tempting range of policy options, so the best way to find the one that matches your needs perfectly is by utilising our knowledge, experience and determination to find you the very best cover.

The employee can enjoy the peace of mind that comes from knowing their family will receive a sizable cash lump sum in the event of their death or a terminal illness diagnosis. And while it can be a stand-alone benefit, in some organisations it’s used as an additional top-up to an existence death in service policy. The money that the family receive isn’t subject to income tax. A number of providers also offer benefits to the insured, such as discounts for gym membership.

The cost of the premiums will depend on a number of factors, including the age of the insured and how much the lump sum payout will be. As always, our team of specialists will be able to talk you through all the options available to you, explaining clearly what the benefits might be and of course how much you will end up paying per month or per year. We’ve worked with a number of business organisations over the years to make sure their employee insurance cover reflects their exact requirements.

For high earning individuals such as senior departmental management and directors, it may be more practical to write a relevant life policy into a trust, a strategy that could help to avoid inheritance tax on the payout. This can be a sensible but complex option, but our experienced professionals will be able to provide all the advice and guidance you’ll need before making a decision.

There will be potential drawbacks with such a policy, of course, and they will need to be taken into consideration before deciding whether it’s right for you. There is usually no surrender value to relevant life cover, and generally it won’t pay out after an individual reaches the age of 75. These are factors that will be explained carefully to you, and if you’re still happy to go ahead DJC Wealth Management will help you find the ideal policy.

To start the ball rolling, all you have to do is get in touch with our friendly team for a chat. We can be reached on 07449 632 927 or if you prefer you can use the online form on our Contact page. We hope to hear from you very soon.

*The Financial Conduct Authority do not regulate inheritance tax planning.