Obtain Tax Relief on Life Insurance Premiums

Are you aware that it is possible to set up cost and tax efficient life cover through your business via a Relevant Life Plan?

Relevant Life Cover is a life insurance policy designed specifically for directors and employees of small businesses. It offers a tax-efficient way to provide life cover for you and your key employees, while also being recognised as an allowable business expense.

If you currently pay for life insurance cover personally out of taxed income then it may be possible to switch to a Relevant Life Cover plan through your company.

Here’s why Relevant Life Cover could be advantageous for you:

1. Tax Efficiency – Payments made for Relevant Life Cover are typically treated as allowable business expenses, meaning they can be offset against your company’s profits before tax. This can result in considerable tax savings for your business
2. Reduced Premiums – As an allowable business expense this also means premiums could be reduced, compared to a typical life policy, by up to 49% if a higher rate taxpayer. For a basic rate taxpayer this figure could be up to 40%.
3. Family Protection – Relevant Life Cover provides a tax-free lump sum payment to your loved ones in the event of your death or diagnosis of a terminal illness during the policy term. This can offer peace of mind knowing that your family will be financially secure during difficult times.
4. Employee Benefits – Offering Relevant Life Cover as an employee benefit can help attract and retain top talent. It demonstrates your commitment to the well-being of your employees and their families.
5. Flexible Cover – You have the flexibility to choose the level of cover that best suits your needs and budget.

If you would like to find out more and see how much you and your business could save (if applicable to your personal circumstances), please contact your financial adviser or your usual contact at Barlow Andrews who can arrange for your life cover options to be reviewed.