The relevant life is one of the well-known life insurance policy which is made available to the employers for offering every individual the death during the service tenure benefits for all employees. It helps mainly the small businesses for attracting & retaining the higher caliber staff and by offering them all attractive packages of benefits that are even tax efficient. It can also be one of the ways for all shareholders directors for taking out the plan of life insurance. You can find more about the Aegon relevant life policy which is based on understanding of present taxation laws and current legislation that might change.
There can the benefits of tax for both employee and employer with the relevant life policy. The employer gets the tax relief as long as premiums are completely for best purpose of businesses. None of the national insurance contribution is paid on policy payments which are paid in fund of RLP. Similarly the employee has also enjoys some of the same benefits of no contribution of national insurance. Their payments of Aegon relevant life policy don’t get taxed at all. Their policy benefits and payments don’t even get counted towards the lifetime or annual pension allowance.
Flexibility of trustee
The employer must arrange for relevant life plan to get it written in the trust for benefit of employee’s family only. This helps in fulfilling all legislative needs for RLP and even in most of the cases; it must help for mitigating inheritance taxes. If you client is shareholder director with the 100 per cent shareholding in business and business is sole trustee, then the trust gets locked up if they die or until the next director gets appointed for acting on behalf of the businesses. They appreciate that being a trustee or not bring in the benefit, depend on completely how client businesses are set up. This is the reason they offer the choice of becoming trustee or not.
The relevant life policy coverage of Aegon is portable, so insured person is able to take along with them to their new jobs too. They can continue making policy payments on their own or can ask their new boss for taking over the payment as a part of their benefit plan. Any of the employer that makes payment on behalf of employees, they are eligible for the tax relief on payments, related to corporation.