Relevant Life Insurance is particularly popular with the self employed and company directors as it’s a tax efficient way to buy individual life cover through your business.
The potential savings can be significant. Engage Wealth Management helped one client get Relevant Life Insurance for less than half the price they would have paid for taking out a regular life scheme.
Unlike a regular life policy, it can also take account of bonuses and dividends – ensuring the cover truly represents your financial worth.
Some of the main reasons you might invest in a Relevant Life Insurance policy include:
If you’re a company director or business owner, you can draw on the expertise of our independent advisers at Engage Wealth Management to find out if Relevant Life Insurance is right for you. We’ll happily gather quotes on your behalf and, should you wish to proceed, we’ll help set up the policy and take on the paperwork.
Arrange a no-obligation call and find out whether Relevant Life cover is right for you: [email protected] or 01273 076587.
Relevant Life policies are becoming popular as more business owners become aware of its tax-saving potential.
Working with a specialist broker means you don’t have to spend hours comparing insurers, working through tax implications, or worrying whether the cover is set up correctly.
In one short call, you can find out if we’re able to offer the support you need.
We begin by understanding how your business is set up and who the policy is intended to cover. Relevant Life plans are designed for directors and employees where traditional group death-in-service schemes aren’t suitable.
We’ll take into account the nature of your employment, how you’re remunerated (salary and/or dividends) and the appropriate level of cover based on age-related limits
It’s all about ensuring the arrangement is compliant from the outset.
Relevant Life Insurance is a tax-friendly way of arranging life insurance – as long as it’s written in a trust from the outset.
We’ll discuss the implications for inheritance tax and corporation tax – and any impact it may have on your pension.
You can be confident your Relevant Life plan will be set up in the most tax efficient way from the start.
Once the framework is agreed, we compare insurers that offer Relevant Life policies suitable for your employment status and earnings.
We assess:
You’ll receive a clear recommendation explaining why a particular insurer fits your circumstances.
We walk you through the recommended policy in straightforward terms – including how the trust works, how claims are paid and how the policy interacts with your wider financial planning.
There’s no pressure to proceed until you’re fully comfortable.
Once approved, we implement the policy for you. This includes completing company and personal documentations, establishing the trust correctly, managing underwriting requirements and liaising with the insurer on your behalf.
As profits, remuneration or company structure change, your Relevant Life cover may need adjusting. We’ll be here should you wish to review the arrangement to ensure it continues to align with tax requirements and your protection objectives.
“When it came to the life insurance we were able to get the right level of cover for our needs and that helped keep my monthly payments as low as possible… We remain fully covered in the event something happens."
If you’re seeking one-person life cover through your business, then there’s a good chance Relevant Life Insurance is the right option. But other policies to consider include:
Personal Life Insurance: If you don’t have a limited company, then you’ll have to consider buying a standard life insurance policy out of your own pocket instead. Learn more about life insurance.
Group Life Insurance: A group life policy covers two or more people in a business and can come with attractive additional perks.
Shareholder Protection: A slightly different option but very much worth considering if you’re in a partnership or have multiple shareholders. Should one shareholder die then it pays out a lump sum so that you can buy the shares, should you so wish. Learn more about Shareholder Protection.
Key Person Insurance: This one’s designed to protect the finances of your business should a key member of your team (which could be you) die or, in some cases, become seriously incapacitated. Essentially, it pays out an amount to the business to cover the shortfall caused by the loss of this person. Learn more about Key Person Insurance.
If you speak to one of our consultants, we’ll make you aware of relevant alternatives wherever necessary.
Engage Wealth Management’s advisers combine hands-on experience in arranging Relevant Life Insurance with broad financial planning knowledge. We hold key industry credentials, including the DipFA and DipPFS, alongside specialist qualifications in mortgages, equity release, long-term care, and Pension Transfer Specialist (PTS) expertise.
“Very professional, very responsive and secured a protection better than the one we had at a cheaper price. Also the investment side was better than we were hoping for.”
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“When it came to the life insurance we were able to get the right level of cover for our needs and that helped keep my monthly payments as low as possible… We remain fully covered in the event something happens and I’m now looking to use Oliver again to move my multiple pension pots from past employers to a single pension.”
Two directors at a communications agency were looking to arrange life cover for the first time. Our adviser, Luke Comerford, discussed their requirements and immediately started making money-saving recommendations.
“I highlighted the fact that arranging personal life cover through the business would be more tax-efficient, as it’s paid for by the business with premiums being a deductible expense,” said Luke.
The total cost to the business for providing £4,000,000 of cover was around £435 per month. Yet, paying for equivalent personal cover through their salaries would have cost around £935 per month – more than double what they ended up paying!
“We secured the cover they requested while saving them around £500 per month,” said Luke. “We also made sure they had a policy which offered the most comprehensive coverage in the UK and abroad.”
They now have peace of mind that they have the right policy in place, at the most competitive price.
Engage Wealth Management featured in VouchedFor’s Top Rated Financial Adviser Guide, as published in The Times and The Telegraph. We’ve also featured in Sussex Business Times (SBT), Citywire, Financial Planner Life podcast and Fund Your Retirement podcast.
Are you looking to find affordable Relevant Life Insurance? Contact our professional advisers at Engage Wealth Management via the contact form below.
Related policies: Critical Illness Insurance – Executive Income Protection – Key Person Insurance – Life Insurance