Relevant Life Plan
Most group risk providers are reluctant to write schemes for fewer than 5 members, and then only as part of a registered group life scheme.
The relevant life plan available to AIC Financial is different. It is a single life, stand-alone death-in-service plan, providing benefits on an individual basis.
Unique individual stand-alone cover
Tax advantages for high earners
Premiums not taxed as benefit in kind
Premiums may be an allowable expense to the employer
Cover now up to 15 times annual salary
There are various advantage for this. For a start, it offers high-earning employees who have substantial pension funds a number of tax advantages.
That’s because the lump sum benefits do not form part of the employee’s annual or lifetime pension allowance.
And although the company pays the premiums they are not normally taxed as a benefit in kind – which can offer huge saving, especially for a high rate taxpayer.
So while it’s mainly aimed at high earners, a relevant life policy can be suitable for any employee. What’s more, the payments may also be treated as an allowable expense for the employer in calculating their tax liability.
Which means it’s also particularly suitable for small businesses that do not have enough eligible employees to warrant a group life scheme.
One of the keys to successful protection planning is to regularly review all your protection.
At AIC Financial we offer regular reviews to ensure your current protection arrangements are suitable to your needs and are competitive in cover and cost. We annually check your cover to ensure that your needs have not changed along with. We could also save you money! Please contact us for your free initial, no obligation Protection review using the link below.