What is relevant life insurance?
Many small business owners would love to offer their employees or directors financial perks such as life insurance. Unfortunately, setting up a group scheme can be expensive, especially if there are not many staff.
There is an alternative in the form of a relevant life policy.
Relevant life cover is a form of death-in-service benefit that is set up and paid for by a company but pays out to a staff member’s or director’s beneficiaries on death.
It is typically used by businesses that aren’t big enough to establish a group life scheme but want to provide a perk for their directors and staff.
Relevant life insurance can also be helpful for high earning directors and staff who have made use of their pension lifetime allowance as a traditional group life scheme would count towards their retirement savings.