Relevant Life
If you are a Director of a limited company then you should talk to us about a Relevant Life plan.
Although originally created to offer an alternative for small companies to a group scheme (that often have a minimum staffing level required), the relevant life plan is now more commonly used by family run businesses as a “director to director” cover.
Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer a death-in-service benefit to its employees (including salaried directors). It’s set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured. The proceeds go directly to the employee’s family or financial dependants.
Most providers offer relevant life plans on a life only basis as it is widely accepted that this is tax efficient. However a major provider has recently launched a plan that includes critical illness cover. At this time there is still no clarity as to the tax-efficiency of this plan and as with any matter regarding taxation we would recommend you seek independent tax advice.
TERMINOLOGY
Decreasing Term
is where the amount you would receive in the event of a claim remains consistent for the period selected (in addition you may have the option to “index” the cover).
Level Term
can also be known as “Mortgage protection”. This is where the amount of cover you have opted for will decrease over a set period of time. Therefore it may used to cover a decreasing loan such as a mortgage.
Whole of Life
a life only plan that will pay out whenever you die (no upper age limit)
Indexing
It will be possible to index certain product which will try to protect the pay out value from inflation, although it may also lead to an increasing premium.
These plans have no cash in value at any time and will cease at the end of the term.
If premiums are not maintained, then cover will lapse.
When having a consultation with Wyke Financial we will consider your specific Protection needs and arrive to an agreed proposal that is both considerate of your circumstances and budget. We aim to outline for you the different areas of insurance cover we can provide and what cover they offer.
Other types of insurance such as buildings & contents or Landlords Insurance will be listed under GENERAL INSURANCE It would be worth your time having a read of the sub sections below so that you can decide prior to your appointment which type of cover is appropriate to you and your circumstances. Although we will of course advise you and recommend an appropriate protection product or package from our panel.