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.
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.
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.
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.
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.
Relevant Life Plan sales aid (Q33189) PDF: 245KB
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.