Here’s a simple solution that often flies under the radar: Relevant Life Policies. If you’re a business owner or work with key staff, this is worth a look. In short, it’s a life insurance policy set up through your company that’s tax-efficient for both you and your employee.
The tax benefits are what make it interesting. Premiums are normally a 100% tax-deductible business expense, and the payout is usually free from income tax and inheritance tax. So the company can save on tax while giving employees something valuable.
The problem is a lot of accountants and business owners don’t even spot it. It’s not complicated, but it doesn’t appear on the usual payroll or benefits checklist. That’s where small HR firms or one-person operations can really add value by flagging it to clients.
Setting one up is straightforward. It has to go through the company, not the individual, and there are some rules to meet the tax advantages – age limits, suitability checks, that kind of thing. Once it’s in place, it’s simple to manage.
The benefits go beyond tax. It shows employees the company cares, and it’s a good tool for retaining key people. For HR providers, it’s a practical perk to highlight to clients and a way to demonstrate expertise.
It’s not for everyone, but if you have key staff, it’s a smart, often-overlooked option. Relevant Life Policies are an easy, tax-efficient way to provide protection, and most companies don’t even think to check.
Don’t miss out on a tax-efficient benefit that many businesses overlook. Contact us today to see how a Relevant Life Policy could work for you or your employees.