relevant life plan
tax deductible life insurance?
Large companies often provide their staff with benefits packages that include insurance such as death in service. As an SME, it may not be possible to offer a group death in service because the company is not big enough or the group of employees you want to support is relatively small.
This is where a relevant life plan comes in. A Relevant Life Plan acts as an individual life insurance policy but is owned and paid by the business with proceeds paid into trust for the beneficiaries.
What’s more is it is tax deductible!
why do life insurance through the company?
The first reason is clear, it is tax deductible. This means that instead of paying premiums from earned income i.e., money which is subject to both corporation tax and income/dividend tax, the premiums can be deducted from corporation profit. This can mean the premiums are up to 50% cheaper in real terms.
The second reason is that you may wish to provide your best talent with a work placed benefit that can help you retain them. Your people are your business. Protecting them shows you care and have their best interests at heart.