A Relevant Life Cover is a life insurance cover that an employer provides to its selected employees. It is an alternative policy to group scheme policies that most of the big companies opt for. If a business is small and it cannot afford the premiums of a group scheme cover, the Relevant Life Policy(RLP) is the best alternative option they have. Apparently, it looks like that it is beneficial to the employees who and an overhead expense for an employer. But there is more than what just meets the eyes as it is a perfect tax efficient life insurance. Check out the other such benefits RLP brings to the table.
Benefits Of RLP For Employers –
Attract Quality Employees – When a company does not want a big expense like paying the premiums of a group life scheme for the employees, it can opt for selected employees and create individual Relevant Life Policy. Generally, companies clearly state for which posts or employees this policy is applicable. In most cases, it is for the higher posts like directors, managers and likewise. Under a scheme attracts a lot of quality employees in such important posts because the employees do not have to pay a single buck for their life insurance and the remuneration of such schemes is extremely high. As a matter of fact, this RLP can help keep the important employees satisfied in the company.
Tax Benefits – Relevant Live Cover is popular as an ideal tax efficient life insurance. There are tax benefits for both the employer and the employee. For the employer, there is corporation tax relief provided the premiums are for the business purpose only. Furthermore, there is no need for paying any national insurance contributions in the policy payments.
For the employee, the policy payments will not be taxed and there will be no inheritance tax in case of the death of the employee. Furthermore, the payments and benefits do not form a part of the lifetime pension allowances.
Maintaining Good Relationships – It is important for a company to maintain a good relationship with the employee who is leaving the company. This helps in creating a positive review of the company to the outside world so that new employees can trust the company. As RLP is portable, the employee can take the policy with him while leaving. They can make payments themselves or ask their new employer to carry on the payment for the policy.