A Relevant Life Plan allows employers to give death-in-service benefits to their employees.
This type of plan could help high-earning employees who have substantial pension funds and don't want their death-in-service benefits to form part of their lifetime allowance. It's also useful for small businesses that don't have enough eligible employees to justify a group
life scheme.
Relevant Life Plans are available as a stand-alone, single life plan. Premiums can be treated as an allowable expense for the employer in calculating their tax liability. The cover is portable so employees can take it to a new employer without having to answer any new underwriting or medical questions. The cover is flexible - it can be written on either a level, decreasing or increasing basis. The employee or their family can make a claim when the person covered dies or meets the providers' definition of a terminal illness.
No one wants to worry about what might happen to their business if a skilled employee can't work because of an injury or illness.
Key Person Income Protection, pays out a monthly income at the end of the chosen deferred period if a key person is unable to work because of an illness or injury.
The monthly income could cover the amount of profit that this key person would have been bringing into the company, and therefore help your clients continue to pay any bills or ongoing business expenses.
A share protection arrangement enables the surviving owners to purchase the deceased owner’s share of the business from the deceased owner’s estate and ensures that the deceased owner’s dependants have a willing buyer and cash instead of a share of the business.
Critical Illness Cover can also be added at an extra cost, the agreement gives the owner the option to sell their share of the business if they are diagnosed with a critical illness.
Many businesses have to borrow funds to be able to realise its plans and quite often the ability to repay any borrowing depends on one or two key people in the business. However, if they die or are diagnosed with a critical illness than the ability to continue with these repayments can be extremely difficult. A loan protection arrangement pays out a lump sum if a key person were to die or be diagnosed with a critical illness, offering peace of mind that your business can repay its borrowing.
