Relevant life

• Our policies are portable, should your client leave their current employer they are able to continue the policy in their own name.
• No assessment of premiums on the employee as benefit in kind or otherwise.
• No assessment on the employee for the purpose of national insurance contributions.
• Benefits are paid free of income tax.
• Benefits do not count towards the lifetime allowance for pension purposes.
• In most cases benefits are paid free of inheritance tax.
• Tax relief to the employer on premiums paid.

Whether or not your business clients currently have life assurance, now could be the perfect time to review their situation to see if they would be better off with a Relevant Life policy.

To help position Relevant Life Policy with your clients, download our sales aid here.

Will my client and their employees be covered from the beginning of their plan?

If your clients apply for a Relevant Life policy,  now includes free cover for up to 90 days, so your clients don’t need to wait for us to complete underwriting before their employees are covered. This is dependent on us having a completed application and direct debit instruction.

• Client must be taxed under Schedule E. (i.e. be employed, ideal for company directors).
• The maximum age to which the plan can cover is aged 75.
• The plan must be for life cover only, this can be on a level or decreasing basis.

A Relevant Life Policy will not be suitable:

• If it is intended to provide benefits other than just death and terminal illness benefit.
• For sole traders or partnerships, excluding Limited Liability Partnerships (LLP).

Our cover limits

The maximum cover available under one plan is:

• Up to age 39: 30 x total remuneration including benefits;
• Up to age 40-49: 20 x total remuneration including benefits;
• 50+ : 15 x total remuneration including benefits.

It is expected that the level of benefit will be calculated as a multiple of the employee's total remuneration package i.e. this can include salary and dividends.

The policy can be transferred to the new employer - the trustees will need to be amended so that the new employer is a trustee. If the individual moves to an employer who is not willing to continue the plan then they can continue the plan on their own but will pay out of net income. Please contact your Zurich Business Account Manager on 08085 546 546 and we will assist with the process.