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Relevant Life Plan.

HMRC confirm that 'disguised remuneration' rules (introduced from 6th April 2011) do not impact on whether premiums to our Relevant Life Plan (RLP) are an allowable business expense. This endorses our efforts to ensure the proposition is fully fit for purpose, so you can be confident when recommending our Relevant Life Plan to your clients.


What is a Relevant Life Plan?

A Relevant Life Plan is a term assurance plan available to employers to provide an individual death in service benefit for an employee. It is designed to pay a lump sum if the employee dies whilst employed during the length of the policy. It will also payout if the employee, whilst employed, is diagnosed with a terminal illness and meets our definition, except in the last 12 months of the policy. A Relevant Life Plan is paid for by the employer.

 

Who is it aimed at?

  • Employers looking to provide 'death in service' benefits, but with too few employees to set up a group scheme.
  • Directors wishing to provide their own individual ‘death in service’ benefits without taking out a scheme on all employees.
  • High earning individuals, such as directors, where ‘death in service’ does not form part of their ‘lifetime allowance’ (£1.5 million 2012/13).

Relevant Life Plans are not available where there is no employer/employee relationship. For example, sole traders, equity partners of a partnership or equity members of a Limited Liability Partnership.

 

What makes it cost effective?

Relevant Life Plans are similar to most other types of life cover except they aim to provide a tax efficient benefit provided by an employer for an employee.

Use our calculator to demonstrate how effective a Relevant Life Plan can be for your clients.

 

Why choose our Relevant Life Plan?

  • Our core literature has been reviewed by a QC, a top senior, English barrister. Therefore, you can be confident when recommending the product to your clients.
  • When it comes to financial underwriting, we’ll always aim to make life easier.  While some providers need supporting financial evidence at lower levels of cover, we don’t ask to see financial evidence until the benefit exceeds £3.5 million.
  • We’ve made the sales process as simple as possible. We have a straightforward combined application and trust pack which will allow you to complete the application in one smooth process. Please note this is paper submission only and isn't available on OLP Connect.

 

Relevant Life Plan Trust

A Relevant Life Plan is designed to be written in a discretionary trust (Legal & General's Relevant Life Plan Trust) at outset, with the employee’s family and dependants as beneficiaries. If the plan is not placed in trust at outset, your client should seek expert legal and tax advice on the consequences of this.

calculator

Use our calculator to show just how effective a Relevant Life Plan can be for your client.
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Find out more

For more details on how the plan works and the benefits and options available please read our Key Features (PDF - 788KB)

Potential saving

This example shows the potential saving (PDF - 36KB) that could be made.
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This is not a consumer advertisement. It is intended for professional financial advisers and should not be relied upon by private customers or any other persons.