Relevant life insurance can also be useful to high earning directors and employees who have used their pension lifetime allowance as a traditional group life scheme would count towards their retirement savings.
What does relevant life cover mean?
Relevant life cover is the name of an insurance product most frequently used by small businesses to provide death in service benefits to company directors and employees. It's also a tax-efficient way to for high earners to access life insurance.
Is a relevant life policy a benefit in kind?
No, HMRC does not consider relevant life insurance to be a P11 Benefit in kind, despite it being taken out to the advantage of the individual. What this means is that there is no additional income tax to pay or National Insurance to worry about.